I reccomend holding if you're long, you can book some leveraged positions, but don't sell BTC you own, unless it exceeds 80% of your Bitcoin trading capital. Between 15% to 80% of it, exposes you enough to profit from the rally, without having too much risk.
We have a great rally here, we broke the Brexit resistance, we broke above the previous downtrend mode, the level where bears and bulls battled for an extended period of distribution, where eventually the bears won, pushing prices down sharply. The drop, on the back of fundamentals, didn't cause major technical damage, so it was clear the trend is largely still up. We did buy BTC a few times so far, but mostly swing trades. We can now hold for longer term, since we have more confirmation that the trend will resume to the upside, showing new highs in the weekly/monthly.
If you're not long, you can gradually build a 15 to 80% of your capital position here, buying it over the course of a week or a month. If trading with leverage you need to wait for the next shorter term setup, but right now, it's possible that market makers want to scare off retail longs, so we can get a retracement during illiquid periods. Just focus on this: we want to see a daily low, or a 3 day timeframe LOW, sit above the 4402 mark, ON CLOSE. I can't stress this enough. Once we see this, we'll know with certainty that odds favor bulls, and that we can see prices well above the previous high in the future.
I'd appreciate your comments, this took a considerable amount of research and charting time.
I'm expecting the most frustrating outcome possible, to let down over-excited bulls and bears first.
This would be, a sideways movement. If this is the case, and we do get a session's low to sit above the aforementioned 4402 support level, it means we're seeing re-accumulation at higher levels, and a sign of even higher prices to come.
Right now, since we found support above the historical MtGox failure generated key level, at the 3300 rmb mark, we can expect price to reach for the next significant fundamental key level above, at 6555 rmb.
If we get the confirmation I want to see next, we're in excellent shape for a very constructive rally.
You're invested in it, right?
You can refer to my position sizing reccomendation for long term traders too. I reccomend an allocation of 15% to 80% of funds, in BTC, specially if you bought lower than this. To buy here, you need to wait for the confirmation outlined above, before entering long term trades. This % refers to your trading capital that you use for BTC.