Cup and Handle Pattern Formation. Long or Short?
The Crypto Market showed signs of recovery since the start of the new year 2023. My overall bias is still BEARISH and will only flip if BTC price could hold above 35k for some time.
BTC price currently sitting at a huge Supply/Demand Zone (RED Rectangle) coming way back from Jan '21. I will always look for entry confirmation before entering any trades but the play here is as per my Short Position tool giving me a nice mid-term trade, selling at 31.7k with a stop at 33.5k. TP at 24.6k gives a nice RR ratio of 4:1. Confluence from this Cup and Handle chart pattern, a handle is to be formed to gain momentum for a higher push up through this strong resistance.
This is my plan for the coming days ahead. It is important to rehearse this earlier mentally or in written form so that when the time comes, you know what to do and emotions are no longer in the picture.
If the stops are hit immediately with a pin, I might re-enter the same short position as "fakeout" price action normally happens after CPI reports are released which is the case here since the release of March CPI report 2 days ago.
BTC price currently sitting at a huge Supply/Demand Zone (RED Rectangle) coming way back from Jan '21. I will always look for entry confirmation before entering any trades but the play here is as per my Short Position tool giving me a nice mid-term trade, selling at 31.7k with a stop at 33.5k. TP at 24.6k gives a nice RR ratio of 4:1. Confluence from this Cup and Handle chart pattern, a handle is to be formed to gain momentum for a higher push up through this strong resistance.
This is my plan for the coming days ahead. It is important to rehearse this earlier mentally or in written form so that when the time comes, you know what to do and emotions are no longer in the picture.
If the stops are hit immediately with a pin, I might re-enter the same short position as "fakeout" price action normally happens after CPI reports are released which is the case here since the release of March CPI report 2 days ago.