It's been a while since I have gone neutral with my stance on Trading View. We had a great run from 4k all the way up to 8k and took profits all the way up. Now, I am reverting my stance to neutral. You could even arguably short it right now. While i won't, let's go over some technicals on why you could.
RSI Daily Divergence Confirmed. This is a huge indication of a market top. Maybe the top isn't permanent but it will be enough to drive the market down for a large enough pull back.
MACD DAILY Cross and confirmed move down - you can see that the initial cross wasn't much of an indicator that we were going down, which is why we held out. To see if that upside pressure was enough to keep pressing BTC into new highs. unfortunately, the gap between the moving averages as we arch to the downside indicate that more downside is in the cards.
Broken Trend line. This was our line to indicate a move to the upside without a DEEP pullback. the pullback will most likely occur now.
We came really close to 10k. Hit just above 9k. As I posted, I am flat on my BTC positions right now. Now it appears that we could retrace all the way to the 6.5k area. Here's the kicker, we could go down even further than that. We'll want to wait to see how this thing shapes up before jumping back in to go long again. If we do jump in again we will want to use stop losses.
Best of luck,
-Sherem
RSI Daily Divergence Confirmed. This is a huge indication of a market top. Maybe the top isn't permanent but it will be enough to drive the market down for a large enough pull back.
MACD DAILY Cross and confirmed move down - you can see that the initial cross wasn't much of an indicator that we were going down, which is why we held out. To see if that upside pressure was enough to keep pressing BTC into new highs. unfortunately, the gap between the moving averages as we arch to the downside indicate that more downside is in the cards.
Broken Trend line. This was our line to indicate a move to the upside without a DEEP pullback. the pullback will most likely occur now.
We came really close to 10k. Hit just above 9k. As I posted, I am flat on my BTC positions right now. Now it appears that we could retrace all the way to the 6.5k area. Here's the kicker, we could go down even further than that. We'll want to wait to see how this thing shapes up before jumping back in to go long again. If we do jump in again we will want to use stop losses.
Best of luck,
-Sherem
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previous idea as an FYI -
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The weekly chart is also falling in line with RSI peaking out, MACD arching over and a doji on the weekly -
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Remember how it blew through 6.5k as resistance? It could do the same as support and go to 5k. We'll wait to enter this time and see what it does as opposed to having ladders ready. you could play some bounces off of that level but for longer term, we'll wait to see what it does.
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If we keep going sideways we'll just be forming a Head and Shoulders pattern. Expect a significant move down if we keep going sideways. If we break $7,000, next stop is 6500.
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No surprise to us, we head down. We break this 7400 area and we go much lower.
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Looks like it's just transforming into a head and shoulder pattern now. The longer we stay sideways and move down the more it will be confirmed.
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Ironically, BTC is still right at where I got out at 7,850. If you are still in, be cautious.
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update on the divergence :
