Good evening Traders,
In these coming hours I expect BTC to sustain a significant loss of value, however, as traders, we can benefit from BTC going UP or DOWN.
To the analysis, as you can see in the graph, BTC is currently consolidating within a symmetrical triangle on the 4H timeframe. It has tested the top and bottom trendline of this triangle, but the decreasing volume suggests that it will break downward. In addition to the decreasing volume, the RSI below the chart is converging immediately above the overbought zone which suggests it may be a quick and painful drop.
The targets for this short are at the previous support levels: 6500, 6300, and 6000. Expect a bounce after hitting one of these targets, but take care because a BOUNCE is not the same as a REVERSAL.
I will update this idea once we've seen some price action, then we can prepare for our next move.
Thank you all and have a nice evening, LTCm00nman.
In these coming hours I expect BTC to sustain a significant loss of value, however, as traders, we can benefit from BTC going UP or DOWN.
To the analysis, as you can see in the graph, BTC is currently consolidating within a symmetrical triangle on the 4H timeframe. It has tested the top and bottom trendline of this triangle, but the decreasing volume suggests that it will break downward. In addition to the decreasing volume, the RSI below the chart is converging immediately above the overbought zone which suggests it may be a quick and painful drop.
The targets for this short are at the previous support levels: 6500, 6300, and 6000. Expect a bounce after hitting one of these targets, but take care because a BOUNCE is not the same as a REVERSAL.
I will update this idea once we've seen some price action, then we can prepare for our next move.
Thank you all and have a nice evening, LTCm00nman.
Trade active:
As you can see above, we successfully reached the 6500 target range as projected and had a nice little bounce to around the 6600 range. This bounce is NOT a REVERSAL, there is VERY little volume and the second and third targets have not yet been reached.
To those who missed the chance to trade this small bounce from 6500-6600:
For RISKY traders: There is currently support at 6500 which has been tested multiple times. Due to the overall bearishness of the market currently, I do not expect the 6500 support to last for much longer. With that being said, there is a rising wedge forming which could potentially carry the price back near the 6700 range. Once again, this is a very risky trade so make sure to use your stop losses. I suggest a VERY tight stop loss around the 6580-6600 range, with the first target being 6700 and then 6800.
For SAFE traders: Wait for the drop into the next zone around the 6300 range. The volume is very weak which suggests there may be a bounce once we hit that range. Wait for a green 4h candle to appear in the range before going long.
To those who missed the chance to trade this small bounce from 6500-6600:
For RISKY traders: There is currently support at 6500 which has been tested multiple times. Due to the overall bearishness of the market currently, I do not expect the 6500 support to last for much longer. With that being said, there is a rising wedge forming which could potentially carry the price back near the 6700 range. Once again, this is a very risky trade so make sure to use your stop losses. I suggest a VERY tight stop loss around the 6580-6600 range, with the first target being 6700 and then 6800.
For SAFE traders: Wait for the drop into the next zone around the 6300 range. The volume is very weak which suggests there may be a bounce once we hit that range. Wait for a green 4h candle to appear in the range before going long.
Several people have been asking "What's going on with BTC?!? Is this a bull trap?
or a bear trap!?" To this I say, RELAX. Trading is a calm & patient man's game. Don't get caught up in the hoopla. I believe the reason so many are worried is because most of the top publishers for BTC predicted it to drop to the 4700-5000 range. Although this may be true in time, we must watch it closely on a smaller time frame to continue making profit whether it goes UP, DOWN, or SIDEWAYS.
Now, to the TA:
This doesn't appear to be a bear or bull trap, just 2 small bounces to the upside so that more people can sell off their btc at a higher price. As you can see above, the volume was getting SOO low when btc was hitting the resistance around 6500, that some smart traders used that opportunity to purchase bitcoin and produce a bounce to the 6800 area. If you'll take a look at my most recently published idea you'll see I called for Risky traders a move to buy at 6600 and go long to 6800. Now you'll notice that I did not call for a move as high as 7000, but if you'll take a look at the chart above and draw a horizontal line at the top of the candle it is at 7064.64, compare that to the candle that dropped us immediately into the wedge I drew, the closing price of that candle was 7067.62. This tells us that BTC is NOT bullish. It was merely a correction because it couldn't even break that resistance which we fell through before.
Looking forward, prepare to see BTC drop to the levels of my second target around 6300-6000 in these coming days. I believe it has already hit its peak and I do not expect anymore upward movement.