Current trend support is now broken, it should act now as resistance. Major time frames indicators are bearish or turning bearish, while US Marshalls dumping another 50,000 bitcoins will help to start slowly spreading panic. US Marshalls seem to always pick the best timing for selling their bitcoins, according to their limited medium time frame. This is the second time they sell after a breakout, plus extended and emotional rally, plus when hitting the resistance of the current one year downtrend channel.
Bitcoin price action is not looking healthy after this fast pump and dump from $315 to $475 and now $365. It should scare a lot of investors as big picture is not helping at all. Plus Bitfinex is currently with lot of longs opened, $24 Millions, but only 4,000 BTC shorts. So, there is room enough to keep going down.
Shorting from $380 offers a 3:1 Risk/Reward Ratio if setting stop at ~$390 (if current downwards dotted red resistance from $475 is broken) and take profit at $350-$340 (above green support). Price still could bounce up to $400, if that happens that would be and even better opportunity to short at that point.
As usual I'm just referring to entry and exit levels, not any fixed round number. It will depend on price action. Do your own research before trading.
Last update to mention I'm completely out of the trade at an average of $355. That's around 7% base profit for this trade.
It could go down a bit lower to $340's, but at the moment there is big resistance, so it's unclear and not a lot of profit to be made right now. Another possibility is sidewides or a bounce up to $370 to retest previous support.
I will be updating with the next interesting trade.
Cheers!
DoctorBitcoin
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*I meant there is a big support at near lower levels. (Not resistance)
DoctorBitcoin
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Finally we had breakdown! 2300CNY was strongly defended by China, but selling pressure was too high and buyers had to get exhausted or scared at some point.
BTW I'm closing short positions everytime price spikes down and adding when opposite for extra profit.
Maddie
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Unfortunately this has nothing to do with the H&S ;p
DoctorBitcoin
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I already answered you that it was not about H&S, but breaking the upwards trend. :)
Maddie
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I agree on that
DoctorBitcoin
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Two resistances playing here, if broken best option is to leave the trade. If it fails to break resistance it would be a new entry point to add some more shorts.
DoctorBitcoin
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Seems it's holding. Added more shorts at $385, my average now is $381.5
DoctorBitcoin
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I shorted a bit lower at around $375 instead $380. Doesn't seem it is going any higher. Gl!
Maddie
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What would your target be if the H&S would be confirmed?
It could go down a bit lower to $340's, but at the moment there is big resistance, so it's unclear and not a lot of profit to be made right now. Another possibility is sidewides or a bounce up to $370 to retest previous support.
I will be updating with the next interesting trade.
Cheers!