Since our last update BTC has moved past the diagonal resistance and broken to the upside. While this was a possibilty it was not the highest probability and we dont take low probability trades.
This setup is quite nice now technically we we are retesting the previous diagonal resistance for support and following another leg up with a target of 8.8-9k. If BTC does not find support there then that would really confirm the lower higher again and continued downside. Like ive stated many times, the bear trend is not broken while our lower high lower low patter is still in tact. Even the higher low that we had in the triangle was a lower low if we look at closing price and not the wicks. While i did make a good amount of profit in the beginning of the bear market the last few months ive only taken very conservative trade with small position size and my overall performance has been break even. We are now entering the 8th month of the bear market and the best thing we can do is preserve our capital for the next bull cycle. Trying to guess reversals is a poison pill and trap that many traders have fallen into. Take a look at any ALT and see how many broken supports or fake reversals have occurred. The best coarse of action is to preserve your capital and let the market break the trend before taking on a sizable position.
If you are a bull in these conditions a decent trade opportunity can be traded of this setup with entry now at 7715 SL at 7190 or 7550 for the ultra conservatives(although likely to get wicked out). With profit taking at 8200 8400 and 8800. I however will not be partaking in this trade. Best of Luck
This setup is quite nice now technically we we are retesting the previous diagonal resistance for support and following another leg up with a target of 8.8-9k. If BTC does not find support there then that would really confirm the lower higher again and continued downside. Like ive stated many times, the bear trend is not broken while our lower high lower low patter is still in tact. Even the higher low that we had in the triangle was a lower low if we look at closing price and not the wicks. While i did make a good amount of profit in the beginning of the bear market the last few months ive only taken very conservative trade with small position size and my overall performance has been break even. We are now entering the 8th month of the bear market and the best thing we can do is preserve our capital for the next bull cycle. Trying to guess reversals is a poison pill and trap that many traders have fallen into. Take a look at any ALT and see how many broken supports or fake reversals have occurred. The best coarse of action is to preserve your capital and let the market break the trend before taking on a sizable position.
If you are a bull in these conditions a decent trade opportunity can be traded of this setup with entry now at 7715 SL at 7190 or 7550 for the ultra conservatives(although likely to get wicked out). With profit taking at 8200 8400 and 8800. I however will not be partaking in this trade. Best of Luck
