The market is overbought and we have to expect for a correction. The price can bounce from the resistance zone formed by the downtrend line and 700.00 resistance level and continue downward movement. But we also know that sometimes crypto markets move out of logic. We must be ready to catch a new strong upward movement to new highs. Is it possible? I think yes and Bitcoin confirms it. We can use a breakout above the resistance zone for opening long trades. Entry level is 708.00 with stop orders at 670.00 level. Profit targets should be 750.00 and 800.00 levels. This is high risk trade and the best entry levels are much lower. Don't invest too much in this market now. It's better to wait for a good correction and buy based on solid reversal signals.
Thanks for the analysis, great as usual! Do you see BTC moving upwards? 18k was a resistance point which was broken today, and it might test 20k before heading for a correction. Bitcoin futures also seems to have increased demand. What are your thoughts?
Thanks again
DLavrov
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@kash27, I read several times the same idea - futures allow shorting and big players can use this opportunity. It's logical. Big money = smart money and buying in the overbought market - it's really stupid idea. But what if they make Bitcoin crash? They will make money on falling, and they will get good entry level for buying. Win Win!
kash27
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@DLavrov, Yea thats a really good point. Though Ive read other analysts who say it will be testing 20k in the next couple of days before heading down, since it broke the 18k resistance today. Then depending on how big the crash is afterwards, money will either be transferred to alts or leave them. This is a bit of an irrational market, and so Im curious to hear your thoughts on that idea.
Although ETH is testing the resistance too, made 12% trading it yesterday.
slfmd
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Weird trade to have right now. BTC working on ATH and money from Alt's gong to BTC. Seems unnecessarily risky.
Really well seen stop order at 670.00… perhaps it went too close, in hindsight a bit lower would have been better but it didn't break below that.
Seeing the price reached ~860.00 and quickly dropped to 800.00, would you mind writing an update on the analysis of this short-time trade?
LPP_LLC
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update? :)
lamppole
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Great work and nice analysis. Currently above 810, how strong of a correction are you predicting? Any feeling it'll hold?
sameerboss31
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hi,
firstly thanks for the amazing charts, so i have been following you for a while and i have observed, when ever you post a LONG trade, the time frame would be in '1 hour' ...is there any technical reason behind it, shouldn't we use '4 hour' or '1 day' as we are going long on trade..or is this time frame more reliable ..?
Thanks again