Here we go again. A few days ago on my last post I was looking for another leg down from our low at the time of $4863 and we easily got that with an eventual bottom of $4,035. Since then I am watching an equilibrium pattern.
Those not familiar it is the start of lower highs and higher lows and the pattern tightens up. To me, its like a spring being wound tightly until it eventually breaks.
So on this chart we had $4035 as the low, $4628 as a lower high (compared to $4759), $4336 as out first higher low, and then $4589 as another lower high (set yesterday).
Bulls will attempt to form a higher low here compared to $4336 and are currently sitting right around $4400 as I type this.
This is a low risk entry point for traders to try and scale in between $4340-4450 or so and have $4336 as the stop loss. Bears will be waiting likely around 12 EMA (orange line) if the bulls do form a higher low and move back up in order to try and set another lower high compared to $4589 and continue to tighten the range up. I am personally in a partial position here with one more order to fill in the $4300's and will look to use the stop appropriately. I would lean towards a bear break still on this pattern but the low risk entries here have me at least interested in my first trade opportunity in over two weeks since I last took profits.
Bulls must set a higher low here and ideally get above 12 EMA and then get the higher high to try and start some momentum on the bullish side. Spikes in bear volume, a fall to a lower low set BTC bulls up for a dangerous situation to re-test $4k level again. Something I personally want to be away from.
Those not familiar it is the start of lower highs and higher lows and the pattern tightens up. To me, its like a spring being wound tightly until it eventually breaks.
So on this chart we had $4035 as the low, $4628 as a lower high (compared to $4759), $4336 as out first higher low, and then $4589 as another lower high (set yesterday).
Bulls will attempt to form a higher low here compared to $4336 and are currently sitting right around $4400 as I type this.
This is a low risk entry point for traders to try and scale in between $4340-4450 or so and have $4336 as the stop loss. Bears will be waiting likely around 12 EMA (orange line) if the bulls do form a higher low and move back up in order to try and set another lower high compared to $4589 and continue to tighten the range up. I am personally in a partial position here with one more order to fill in the $4300's and will look to use the stop appropriately. I would lean towards a bear break still on this pattern but the low risk entries here have me at least interested in my first trade opportunity in over two weeks since I last took profits.
Bulls must set a higher low here and ideally get above 12 EMA and then get the higher high to try and start some momentum on the bullish side. Spikes in bear volume, a fall to a lower low set BTC bulls up for a dangerous situation to re-test $4k level again. Something I personally want to be away from.
