doesn't get much easier than this. signs of divergance on daily and 4hr, major resistances ahead and volume is lacking. The bears have been patient and cautious here but I believe major selling will occur soon. This is a perfect area to start layering shorts and I have already started to accumulate my position. I will be taking this trade without a stop loss and adding to my position if we continue to rally although if we break 9k and the signs of divergence decrease I would be uneasy, very unlikely though. The only supports holding the bears back are at 8k which if tested again will be easily broken and the 6k region where I will be targeting. Any signs of support before then will be evaluated along the way with updates to this idea.
Comment:
definitely rallied much higher than I thought we would but I have continued to layer shorts sparingly since 8500 averaging out my price close to 9k. We haven't been making small moves either way in bitcoin lately and this impulse to the downside doesn't seem to be just a correction. Now that we are below 9k I dont believe we will break the 9700 area again. I will be looking for a lower high to put the majority of my position at play because I believe that we will break back into the 7k regions again soon.
