On the Day time frame we have
1. that is flat
2. coming off these low and confirming divergence
On this 4 hour chart we have.
1. in flat territory
2. Mini forming
3. If you look, BTC is currently sitting on my support point, (possible retest) and small upwards .
I said it once before that if we move sideways it would most likely confirm a move to the upside. So, if we base out in this channel I would imagine we would get another push up. I am leaning on this one, and to be frank I am not worried about anything breaking down and I will holding for a swing play. I will tell you why and how to trade it.
Here is why I am not concerned. Notice how Shorts are increasing but price is not. On 4/1 (green vertical line) we had shorts drive price down to $6,400 and increase short exposure substantially and now shorts have increased there positions AGAIN and we aren't breaking lower. We even had some longs close out on this last big candle down and we didn't get a push down to 6.4k. If I were short I would not want to be seeing this.
How to trade it? It's not out of the realm of possibility that we will get another push down. The best thing to do is martingale your positions in. Have laddered buys down to 3.5k, with some reserves in place in case it pushes even lower past 4k. This is a great SWING play IMO . We don't know when it's going to turn but shorts are going to cover eventually either they will get squeezed or they will take profit. A martingale strategy here is a great play IMO , make sure you read up on it if you don't know what it is.
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Happy Trading. Don't stress, pick your points and DON'T USE LEVERAGE.
If you want a more detailed post on my short analysis, check out my previous post -