This could play out just like the good ole' days, when you'd see the alts drain to fund Bitcoin in the final stages of its bull run. In that case, we'll possibly see Litecoin follow along this time, since it's been so good to the King, while everyone else has been around just to attempt to dethrone him.
The chart has most of the description in it but I'll summarize here:
There is a higher low forming which hopefully results in a final push up to around $12500, after which I'll exit and ensure the strength of BTC before entering around 12800 or so, if it maintains the bull run. Otherwise, if it returns to the downtrend, I've no other option but to short. Any long positions are supplemented by a strict trading strategy of maintaining some level of profit throughout the ups and downs, otherwise it's too difficult to watch profits drain. If I can study the market and short/long effectively, and be sure keep appropriate stops, I can be okay riding peaks and valleys knowing I could pull some fiat out at any time if an emergency arises.
Anyway, back to the trade:
Looking carefully at the chart, I could position my stops lower (at 9600 or so) just to make sure i don't get stopped out of a profit position in case this correction leads back into an uptrend, however, the supports present suggest a break of the downtrend line and the higher low will take it down past the more optimistic stop of 9600 and much futher. In the worst case scenario, I still want to take some significant profit from the position (which started at around 7-8K).
Also, in a breakdown event, I want to end up with more Bitcoin, and will attempt to short for as much as I possibly can, because I'm long term optimistic about Bitcoin.
The future of 'Satoshi's Vision' is healthy and growing more interesting by the day. Regardless of the price of the asset itself, the level of conversation it spurs around laypeople getting involved with investing and taking control of their finances is more priceless than gold - digital or not.
The chart has most of the description in it but I'll summarize here:
There is a higher low forming which hopefully results in a final push up to around $12500, after which I'll exit and ensure the strength of BTC before entering around 12800 or so, if it maintains the bull run. Otherwise, if it returns to the downtrend, I've no other option but to short. Any long positions are supplemented by a strict trading strategy of maintaining some level of profit throughout the ups and downs, otherwise it's too difficult to watch profits drain. If I can study the market and short/long effectively, and be sure keep appropriate stops, I can be okay riding peaks and valleys knowing I could pull some fiat out at any time if an emergency arises.
Anyway, back to the trade:
Looking carefully at the chart, I could position my stops lower (at 9600 or so) just to make sure i don't get stopped out of a profit position in case this correction leads back into an uptrend, however, the supports present suggest a break of the downtrend line and the higher low will take it down past the more optimistic stop of 9600 and much futher. In the worst case scenario, I still want to take some significant profit from the position (which started at around 7-8K).
Also, in a breakdown event, I want to end up with more Bitcoin, and will attempt to short for as much as I possibly can, because I'm long term optimistic about Bitcoin.
The future of 'Satoshi's Vision' is healthy and growing more interesting by the day. Regardless of the price of the asset itself, the level of conversation it spurs around laypeople getting involved with investing and taking control of their finances is more priceless than gold - digital or not.
Trade active:
On my chart, it's bumping up against the top of the channel.
My chart shows another resistance at 11600-11700
But the middle of the channel has so far held, which means if it fails to breakout of the channel, it has some support at 10800.
The reason 12200-12500 is my target is because that's where the ascending channel meets with the downtrend resistance formed by the Bull Trap (around 17K) after the top (around $19990).
Still though...
It looks ridiculously bullish. It's broken the top of my ascending channel once, and looks like it's not even considering breaking the middle. If that keeps up it will have plenty of momentum to bring it up past 13K and once it goes past around 13500, it's very likely to test the 18000 level... if it breaks that... new all time highs are pretty much a given.
Even so... I'm keeping a close stop loss on my trading balance. In the case of a downturn at $12,200-12500, I want to be positioned to short, even if that means missing a bit of profit if it turns down before $12,200.
My chart shows another resistance at 11600-11700
But the middle of the channel has so far held, which means if it fails to breakout of the channel, it has some support at 10800.
The reason 12200-12500 is my target is because that's where the ascending channel meets with the downtrend resistance formed by the Bull Trap (around 17K) after the top (around $19990).
Still though...
It looks ridiculously bullish. It's broken the top of my ascending channel once, and looks like it's not even considering breaking the middle. If that keeps up it will have plenty of momentum to bring it up past 13K and once it goes past around 13500, it's very likely to test the 18000 level... if it breaks that... new all time highs are pretty much a given.
Even so... I'm keeping a close stop loss on my trading balance. In the case of a downturn at $12,200-12500, I want to be positioned to short, even if that means missing a bit of profit if it turns down before $12,200.
Trade closed: stop reached:
Stopped out at $10785. Not too bad, considering I was long from around 7-8k.
Expecting rebound attempt from ~$9182 (61.8% fibb ret) so opening short.
Expecting rebound attempt from ~$9182 (61.8% fibb ret) so opening short.