“I firmly believe that a short term bottom lies somewhere in the range of $5,964 - $6,123. From there I expect to see a 1-7 day rally that retests the short term daily EMA’s (12 & 26). If not currently in a trade then I strongly advise against opening a position right now. Wait for the bounce, and/or multiple days of consolidation.”
I was tweeting like a mad man all day saying to sell BTC:USD, ETH:USD, ETH:BTC, and LTC:BTC. In the daily update I outlined those positions ahead of time so that there would be plenty of time for anyone who wanted to position themselves accordingly (refer to to day 107).
From here it is still possible to see the pump continue for another 1-5 days. The price is currently being squeezed in between the 12 & 26 period EMA’s and they could make a crossover in the next day or so.
That would create a third higher low and would likely send the price right back to $7,000. If we get a close below the 26 period , or the price falls below $6,350, then I would fully expect this pump to be over.
If you are not in a position then there are a few options still on the table.
1) Scale into a short or out of spot at upcoming levels of resistance - $6,950 | $7,150
2) Short or sell spot as soon as the price falls below $6,300
3) Short alts vs BTC - LTC is forming a after breaking down a major level of support
My philosophy about trading is a simple one. I believe I first learned the sentiment from Peter Brandt on Twitter.
‘Diligently manage stop losses and let the profits take care of themselves.’
I am using Bill Williams Fractals on the in order to actively manage my stop losses:
BTC:USD - $7,776
ETH:USD - $618
ETH:BTC - 0.0815
LTC:BTC - 0.01601
The stop losses will be moved up once a new up prints on my chart.
It doesn’t appear that the ruling from the SEC will have an impact on the technicals. ETH:USD and ETH:BTC got a nice green candle immediately following the news, but turned around right where the trend suggested.
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