pbrooks1976

Bitcoin is bullish, right ?

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
So Bitcoin is bullish right ?....

long term I agree but short term there is massive over-extension here.

A quick look at the 4 hour chart shows a short time frame ascending wedge (blue lines) contained within a much larger ascending wedge (orange lines) on higher time frames.

a bearish chart pattern within another bearish chart pattern sounds like danger to me.

on this chart the black line shows the very high time frame gradient of BTCUSD graph, and I believe the market needs to pull back to this.

the RSI on 4 hour time frame is showing a symmetrical triangle pattern , that looks like it will break soon, of course this could go either way, but due to the overbought nature of RSI , the 2 bearish patterns and the MACD crossing into a downslope surely this can only go one way.

I am going to short this. target is the black line but will probably take at least half profit on the way down, probably around $25k or so.

stop loss here is going to be $200 above the top line of both wedges .

Comments

analysing btc with straight trend lines won't work. You will notice the straight line trends don't add up. The trading algorithm for cryptocurrency is best suited using an elliptic curve for a trend analysis.
+4 Reply
Wow so you shorted at just below 29k. Are you still holding on desperately to that trade. Did comments from @GeekMama ,"(pro)" who had a similar view/chart as you , help hammer in that nail in the coffin of fighting the trend?
+2 Reply
Opportunity was at 10k now all we have to do is hold our long trades and let's see how high retail can take our positions.
+2 Reply
MWJF Crypto_Technical_Analysis_101
Reply
hahahahha
+1 Reply
this didnt age well
+1 Reply
wrecked
+1 Reply
Looks like
+1 Reply
I’m sorry I can’t take any analysis that refers to RSI seriously...
Reply
Why on earth would you short in such a strong uptrend? Of course it will break at some point, but random lines aint gonna help you. It will break when it breaks.
Reply
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