As per the previous trade, short opened at 9700 with a stop loss of 9500, which is profit. Clearly the 8800 was rejected in order for the price to re-enter the strong support lines as shown.
What has happened which is preventing the price from moving down? The fed is once again stepping in to purchase bonds and attempting to keep the stock market afloat for the 100th time. BTC's momentum has been moving in the same direction as major indexes and it is ill advised to believe that it will decouple from this trend should the wider markets / stock market start to crash again. The artificial exit plan that is being created by the wealthy has been devised to take money away from the oblivious. Yes, the markets have been almost disassociated with the economy, however, this will not last forever. Lessons to many traders, including myself, is that the signs were there that the markets would rise and there are obvious signs that the markets will fall once more (maybe for a long time, there's a word for it).
What to expect from here and how to trade it?
Expect BTC to approach the upper trend line which also happens to be the peak VPVR for this trading range (~$9700). This means that there was lots of trading activity at this price. Where there are sellers, there are buyers and therefore people trapped at these prices who are trying to break even. With the current momentum of the market shown in the RSI BTC always resets at the bottom of the daily RSI or near the bottom, so do not be foolish into thinking that this rally will continue on forever, it won't.
There are two ways of doing this, short around 9600-9700. There is no guarantee you will short the top, so short between those prices. The second short would be the break of the bottom trend. Place stops at your own discretion.
First target is $8800 as per the chart.
This is invalidated once we are closing above the top trend line.
Goodluck.
What has happened which is preventing the price from moving down? The fed is once again stepping in to purchase bonds and attempting to keep the stock market afloat for the 100th time. BTC's momentum has been moving in the same direction as major indexes and it is ill advised to believe that it will decouple from this trend should the wider markets / stock market start to crash again. The artificial exit plan that is being created by the wealthy has been devised to take money away from the oblivious. Yes, the markets have been almost disassociated with the economy, however, this will not last forever. Lessons to many traders, including myself, is that the signs were there that the markets would rise and there are obvious signs that the markets will fall once more (maybe for a long time, there's a word for it).
What to expect from here and how to trade it?
Expect BTC to approach the upper trend line which also happens to be the peak VPVR for this trading range (~$9700). This means that there was lots of trading activity at this price. Where there are sellers, there are buyers and therefore people trapped at these prices who are trying to break even. With the current momentum of the market shown in the RSI BTC always resets at the bottom of the daily RSI or near the bottom, so do not be foolish into thinking that this rally will continue on forever, it won't.
There are two ways of doing this, short around 9600-9700. There is no guarantee you will short the top, so short between those prices. The second short would be the break of the bottom trend. Place stops at your own discretion.
First target is $8800 as per the chart.
This is invalidated once we are closing above the top trend line.
Goodluck.
There is potential that BTC will fall much greater than this. Look at my other ideas. Stops have been stated.