Entered trade after the 4hr found support on the bottom trendline in 4hr channel. Bull DIV on 4hr increases chances of bull move bounce. Target is where long term resistance converges with top of this channel around 9k. Tight stop loss below recent lows provides good RR. I believe we may be in longer term bear move, perhaps in a falling wedge. price positions are close estimates.
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Potential invalidation. So immediately after posting this price made a noticeable drop and closed outside of my channel. If price continues down below the red dashed line my trade thesis will likely be invalidated.
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Also concerning is that previous support is now acting as resistance.
Trade active
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I moved my stop up to a bit below 7800. I am patiently waiting to watch for a pullback. There is some possible confluence with the 382 and 50 fib and lower resistance of the channel. If that plays out healthy I will consider adding to my position.
Trade closed: stop reached
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This was a simple setup with a market stop placed below 7800. Bitmex absolutely rekt me. The screen-cap below says it all.