The bearish case for Bitcoin is starting to gain more substance and I plan to "dip my toes in the water" and start building a short position.
- On the daily chart Bitcoin officially closed below the $6000 mark for the first time in 2018.
- The orange support trendline is well and truly broken
- We continue to make lower highs and lower lows without any real sign of a reversal pattern setup
Having said this, if there is a strong turn around and a break of the blue resistance trendline, then I will be out very quickly as I DO NOT want to get caught on the wrong side of this trade.
We are in a period of very low volatility - and low volatility precedes highly impulsive moves. Therefore, I will not be risking a large amount at this stage and plan to make use of a tight stop loss.
I will post another trade idea today showing entry levels on a shorter time frame.
- On the daily chart Bitcoin officially closed below the $6000 mark for the first time in 2018.
- The orange support trendline is well and truly broken
- We continue to make lower highs and lower lows without any real sign of a reversal pattern setup
Having said this, if there is a strong turn around and a break of the blue resistance trendline, then I will be out very quickly as I DO NOT want to get caught on the wrong side of this trade.
We are in a period of very low volatility - and low volatility precedes highly impulsive moves. Therefore, I will not be risking a large amount at this stage and plan to make use of a tight stop loss.
I will post another trade idea today showing entry levels on a shorter time frame.