Yesterday I was watching closely as the price of Bitcoin approached resistance at $7,600. That is the first key level of resistance that was outlined in Day 93. There was established horizontal resistance (white solid) as well as the 3 week downtrend line (red dotted).
I have been expecting a retest of that trendline since 5/25, when I drew the maroon arrow. From here I am prepared for two options.
If we breakthrough this area of resistance then I will expect a rally to the next key area ($7,950) that was outlined in Day 93.
I will be selling spot Bitcoin and Ethereum at each level of resistance, planning on buying back at $5,000 and $300 respectively. Yesterday I made my first sale at $7,550. If we are unable to breakthrough $7,600 in the next 24-48 hours then I will be looking to sell more at this level. I currently have an order set to sell ETH at $609.
I also have an order set to open a margin short as soon as/if we create a new local low below $7,024. The target for that trade is also $5,000.
The Ichimoku Cloud and 50 week moving average are the main reasons I am confident in my bearish position. The cloud is fully bearish on all time frames from 2 hour - 1 week. It is the first time we have had a bearish TK cross on the weekly cloud since 2015. It is also the first time we have closed a weekly candle under the 50 period MA since 2015.
As mentioned in previous posts I expect a rally for the next 0-12 days before continuing the downtrend. We oversold on 5/22 and are just now getting back to equilibrium from that move.
Until next times happy trading and keep in mind that likes/comments/follows are greatly appreciated!
I have been expecting a retest of that trendline since 5/25, when I drew the maroon arrow. From here I am prepared for two options.
If we breakthrough this area of resistance then I will expect a rally to the next key area ($7,950) that was outlined in Day 93.
I will be selling spot Bitcoin and Ethereum at each level of resistance, planning on buying back at $5,000 and $300 respectively. Yesterday I made my first sale at $7,550. If we are unable to breakthrough $7,600 in the next 24-48 hours then I will be looking to sell more at this level. I currently have an order set to sell ETH at $609.
I also have an order set to open a margin short as soon as/if we create a new local low below $7,024. The target for that trade is also $5,000.
The Ichimoku Cloud and 50 week moving average are the main reasons I am confident in my bearish position. The cloud is fully bearish on all time frames from 2 hour - 1 week. It is the first time we have had a bearish TK cross on the weekly cloud since 2015. It is also the first time we have closed a weekly candle under the 50 period MA since 2015.
As mentioned in previous posts I expect a rally for the next 0-12 days before continuing the downtrend. We oversold on 5/22 and are just now getting back to equilibrium from that move.
Until next times happy trading and keep in mind that likes/comments/follows are greatly appreciated!
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