Yesterday I made a post right as the price was testing the triangle that started forming on 2/6. I expected a small bounce to $7,450 before eventually breaking down that support and creating a new local low. I made a post when the price was at $7,200 and labeled it as a short.
The red arrow that gets printed on my chart didn’t show up until 8 hour later when the price had already fallen to $6,840. I wanted to clarify that I would never recommend opening a short after the price pulled back over 10% in 24 hours. That is when it is very important not to chase. Instead it would be time to prepare for the next possible entry.
Due to how fast and far we have fallen in such a short amount of time I am expect a reversion to the mean. That could come in the form of a bounce to $7,000 - $7,200 or it could come through days of consolidation.
The market is way too bearish to consider longing in this spot. This is the time to plan for the next bearish entry - if you are not already in a position. What I would do is set bids at $6,975 and $7,175 to open a short and/or sell spot. I would make each order for 25% of my trading roll.
If we continue to bounce up to $7,400 then I would add another 25% and set a stop loss anywhere from $7,550 - $7,775 (depending on your risk appetite).
I would also set an order for the rest of my position to trigger if and when the price creates a new local low below $6,624. There would be either 25%, 50%, 75% or 100% of the roll left to enter. If we consolidate instead of bouncing then I would enter 100% after breaking down below $6,624. If the price resisted $7,000 and then pulled back there would be 75% of the roll left to enter. I think you get the idea.
Another good trade that is on the table is shorting the ETH:BTC pair. It hasn’t moved much at all in the last 48 hours but it has been steadily finding resistance at the 50 day MA. Historically shorting alts vs Bitcoin is a very safe bet in a bear market. I am in the process of building a position myself. Using the strategy outlined above I am currently 50% entered and am waiting patiently for further confirmation.
I am also happily holding onto my ETH:USD short which a target of $305.
If the bear market has you feeling down then go outside and get some sun! If that doesn’t help then talk to someone about how you are feeling. As always feel free to shoot me a message if you need someone to talk to!
Until next time trade happily and remember that liking/following is good karma!
The red arrow that gets printed on my chart didn’t show up until 8 hour later when the price had already fallen to $6,840. I wanted to clarify that I would never recommend opening a short after the price pulled back over 10% in 24 hours. That is when it is very important not to chase. Instead it would be time to prepare for the next possible entry.
Due to how fast and far we have fallen in such a short amount of time I am expect a reversion to the mean. That could come in the form of a bounce to $7,000 - $7,200 or it could come through days of consolidation.
The market is way too bearish to consider longing in this spot. This is the time to plan for the next bearish entry - if you are not already in a position. What I would do is set bids at $6,975 and $7,175 to open a short and/or sell spot. I would make each order for 25% of my trading roll.
If we continue to bounce up to $7,400 then I would add another 25% and set a stop loss anywhere from $7,550 - $7,775 (depending on your risk appetite).
I would also set an order for the rest of my position to trigger if and when the price creates a new local low below $6,624. There would be either 25%, 50%, 75% or 100% of the roll left to enter. If we consolidate instead of bouncing then I would enter 100% after breaking down below $6,624. If the price resisted $7,000 and then pulled back there would be 75% of the roll left to enter. I think you get the idea.
Another good trade that is on the table is shorting the ETH:BTC pair. It hasn’t moved much at all in the last 48 hours but it has been steadily finding resistance at the 50 day MA. Historically shorting alts vs Bitcoin is a very safe bet in a bear market. I am in the process of building a position myself. Using the strategy outlined above I am currently 50% entered and am waiting patiently for further confirmation.
I am also happily holding onto my ETH:USD short which a target of $305.
If the bear market has you feeling down then go outside and get some sun! If that doesn’t help then talk to someone about how you are feeling. As always feel free to shoot me a message if you need someone to talk to!
Until next time trade happily and remember that liking/following is good karma!
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