Bitcoin indicate a clear trend reversal since the last diamond
pattern and it is now preparing for the next downleg.
How to recognize if price changed the trend ?
Well, during several weeks price was stagnating and therefore formed a diamond pattern which is a pattern consisting on the price squeezing for sometimes(could be several hours, days or weeks depending on the timeframe) and finally forming a kind of a diamond then break it in one direction or another.
usually it indicate a trend reversal (like in this case). there was an obvious break down of this price squeezing confirming us that trend changed
How can we find a setup which provide a good entry point and a good target ?
First of all there is an obvious first impulse movement followed by a retracement to a key level. Logically next step will be a second impulse
(caracteristic of a trend) and the target is the red box on chart
Second the retracement just goes unto the key level key level consisting in a combination of :
- the neckline of the H&S pattern
- the 0.618 fib extension of last lower high
So price goes unto that level and the retracement just slow down and it is now rejecting it.
Considering all of this, we are in the optimal zone to enter short on it with a stop loss above the key level and a take profit in the red box
Good luck !
How to recognize if price changed the trend ?
Well, during several weeks price was stagnating and therefore formed a diamond pattern which is a pattern consisting on the price squeezing for sometimes(could be several hours, days or weeks depending on the timeframe) and finally forming a kind of a diamond then break it in one direction or another.
usually it indicate a trend reversal (like in this case). there was an obvious break down of this price squeezing confirming us that trend changed
How can we find a setup which provide a good entry point and a good target ?
First of all there is an obvious first impulse movement followed by a retracement to a key level. Logically next step will be a second impulse
(caracteristic of a trend) and the target is the red box on chart
Second the retracement just goes unto the key level key level consisting in a combination of :
- the neckline of the H&S pattern
- the 0.618 fib extension of last lower high
So price goes unto that level and the retracement just slow down and it is now rejecting it.
Considering all of this, we are in the optimal zone to enter short on it with a stop loss above the key level and a take profit in the red box
Good luck !
Trade active
Comment:
there is a correct 1:5 winning ratio by taking this trade, enjoy!
Comment:
and the ig market sentiment is 88% bullish over bitcoin. understand that 95% of traders are loosers. because there is a large majority of bullish traders that means the price will go down.