This is the 4 hour chart of Bitcoin, Bitfinex.
The bearish divergence at the recent lower high gave way to a fast drop, which has bounced where it needed to bounce. We are currently tentatively trading up.
We now have a new wedge.
Typically, I lose money in these environments. I like clean, easy trades. I do not enjoy scalping within a range. Yet, this is all we can do for now.
We are trading up since the low established on 12/22. However, be warned that the more touches of a trendline, the greater probability of a break. Price seems much more confortable on the low end of the edge, rather than rallying to new highs. This still implies that there is another waterfall to come.
This is not a certainty, but it's what the chart is saying for now. Could be just go up? That is always a danger in Bitcoin. The highest probability is up, n any timeframe.
I'm currently long, but I expect the rally to stop at the upper falling trendline (white). If price breaks up from there, I will reistate long positions. Beforehand, I will certainly short at a touch of that trendline.
For now I'm bullish, but I still expect a fall to below 10k. This would really provide the firepower to take us to new highs.
The bearish divergence at the recent lower high gave way to a fast drop, which has bounced where it needed to bounce. We are currently tentatively trading up.
We now have a new wedge.
Typically, I lose money in these environments. I like clean, easy trades. I do not enjoy scalping within a range. Yet, this is all we can do for now.
We are trading up since the low established on 12/22. However, be warned that the more touches of a trendline, the greater probability of a break. Price seems much more confortable on the low end of the edge, rather than rallying to new highs. This still implies that there is another waterfall to come.
This is not a certainty, but it's what the chart is saying for now. Could be just go up? That is always a danger in Bitcoin. The highest probability is up, n any timeframe.
I'm currently long, but I expect the rally to stop at the upper falling trendline (white). If price breaks up from there, I will reistate long positions. Beforehand, I will certainly short at a touch of that trendline.
For now I'm bullish, but I still expect a fall to below 10k. This would really provide the firepower to take us to new highs.