Bitcoin is still in a downtrend since the Bitfinex disaster hack. I'm mostly posting this trading idea so I don't forget to publish my new "Quadruple EMA" indicator, which you can see on the chart.
Current price: 565 USD
Short Entry: 580 USD
Target: 500 USD near the monthly S3 of the monthly pivot which is near 485 USD
As of today 200 EMA is at 529 USD and the 200 SMA is at 507 USD
Stop loss: 605 USD
Risk: 25 USD
Reward: 80 USD
P.S. You can make the indicator smaller if you go with your mouse to the black line which divides the main chart and the indicator chart (where two arrows appear which then allows to make the indicator window much smaller).
Current price: 565 USD
Short Entry: 580 USD
Target: 500 USD near the monthly S3 of the monthly pivot which is near 485 USD
As of today 200 EMA is at 529 USD and the 200 SMA is at 507 USD
Stop loss: 605 USD
Risk: 25 USD
Reward: 80 USD
P.S. You can make the indicator smaller if you go with your mouse to the black line which divides the main chart and the indicator chart (where two arrows appear which then allows to make the indicator window much smaller).
Comment:
UPDATE: 3 days later
The price actually from 580 USD again lower. But as I said before I deem the risk now much higher that a bottom is near. So I recommend to close the short from 580 USD here at 570 USD. And then do nothing and sit on your hands and watch. Because I have no clue if this holds or not. But the risk to the upside is growing, but not confirmed enough to go long:
The price actually from 580 USD again lower. But as I said before I deem the risk now much higher that a bottom is near. So I recommend to close the short from 580 USD here at 570 USD. And then do nothing and sit on your hands and watch. Because I have no clue if this holds or not. But the risk to the upside is growing, but not confirmed enough to go long:
Surprise. The market did not behave as I had planned... Instead of first making a brief spike higher towards 580 USD and then going lower, the price first made another decline and then spiked (strongly) higher to 580 USD.
Which renders this short trade much more risky, because higher time-frames are starting to now look more bullish that a bottom seems to have formed after this down-up pattern (instead of the up-dow pattern I was hoping for.