BTC has been extremely choppy and volatile the last few days and it's probably given you a headache as much as me.
I want to bring your attention to this potential pattern that has formed. I say POTENTIAL because it could easily invalidate it at this point. However, looking at this pattern that is forming we can get some clarity with the magnitude of the move either to the upside or the downside.
We have successfully formed the right shoulder. We knew this 7400 level was critical but we now know how critical this 7350-7400 really is. If it breaks, I expect minor support at 7100 but ultimately I would imagine it will blow through it and go to the stronger support channel at 6600.
How does this revise our game plan that it's going to 4k? The more we move down to 6.6k, the more it validates that a move to 4k is possible. What i am worried about at this point is if it comes sooner and that BTC takes it's sweet time wandering down to 6.6k, a minor bounce and then starts heading down again.
Daily MACD is negative. Weekly MACD is negative. We are still in a largely bear market.
It's now summer, people are getting tired of watching it move hardly at all. Need more convincing it could still go down, look at my past post.
Conclusion: Stick to a plan that has BTC going down past these lows, whether you use stops or laddered positions. If you laddered, be prepared to hold on to it all summer. If you don't want to do that, use a stop.
Happy Trading,
-Sherem
I want to bring your attention to this potential pattern that has formed. I say POTENTIAL because it could easily invalidate it at this point. However, looking at this pattern that is forming we can get some clarity with the magnitude of the move either to the upside or the downside.
We have successfully formed the right shoulder. We knew this 7400 level was critical but we now know how critical this 7350-7400 really is. If it breaks, I expect minor support at 7100 but ultimately I would imagine it will blow through it and go to the stronger support channel at 6600.
How does this revise our game plan that it's going to 4k? The more we move down to 6.6k, the more it validates that a move to 4k is possible. What i am worried about at this point is if it comes sooner and that BTC takes it's sweet time wandering down to 6.6k, a minor bounce and then starts heading down again.
Daily MACD is negative. Weekly MACD is negative. We are still in a largely bear market.
It's now summer, people are getting tired of watching it move hardly at all. Need more convincing it could still go down, look at my past post.
Conclusion: Stick to a plan that has BTC going down past these lows, whether you use stops or laddered positions. If you laddered, be prepared to hold on to it all summer. If you don't want to do that, use a stop.
Happy Trading,
-Sherem
Comment:
previous post outlining the case for 4k -
Comment:
This pair has hit every one of my fan trendlines, rounded off this right shoulder and is hitting this 3rd trendline fan. We are still in this channel and need to be mindful of this 3rd wave it's making.
Comment:
at the neckline, make sure you have your plans in place.