Sorry for the double post on Bitcoin, but I'd like to call attention to the very first analysis I ever posted on TradingView. I was new to market analysis at that point, and clearly I was wrong that 6K would hold. But I did give a possible bearish scenario there, and we're currently at the sell zone for that possibility:
As you can see, despite my doubts, BTC has followed my red (worst case) scenario so far. This would mean that the trade would have been to short exactly at the recent top (major support turned resistance). The reason I wanted to post this additional analysis is because I wanted to make a couple of trading setups, as the profit potential is probably pretty large, regardless of which direction it chooses.
My original idea was of course that if the 6K support broke, to wait and sell once Bitcoin retested the 5.7K area as resistance. This is exactly what happened this past week, but we have yet to experience a significant pullback. So it's possible we consolidate below the resistance and break out to the upside, I guess. Right now, Bitcoin is experiencing a bearish divergence in the daily RSI, if it stops here, but this can technically be negated on another big push up.
SHORT SETUP:
SELL 5.4K-5.8K
TARGETS:
4.2K
3.8K
2.8K
Stop loss: above 5.8K/6K (depending on risk tolerance)
LONG SETUP:
Break of 5750
TARGETS:
6.3-6.4K
7.4-7.5K
8.5K
9.9K
Stop loss: Below 5.3K (or lower, depending on risk tolerance).
This is not financial advice. These are just potential setups I'm looking at. Especially since my sell target from my first ever analysis has been reached, I thought I'd post this.
-Victor Cobra
As you can see, despite my doubts, BTC has followed my red (worst case) scenario so far. This would mean that the trade would have been to short exactly at the recent top (major support turned resistance). The reason I wanted to post this additional analysis is because I wanted to make a couple of trading setups, as the profit potential is probably pretty large, regardless of which direction it chooses.
My original idea was of course that if the 6K support broke, to wait and sell once Bitcoin retested the 5.7K area as resistance. This is exactly what happened this past week, but we have yet to experience a significant pullback. So it's possible we consolidate below the resistance and break out to the upside, I guess. Right now, Bitcoin is experiencing a bearish divergence in the daily RSI, if it stops here, but this can technically be negated on another big push up.
SHORT SETUP:
SELL 5.4K-5.8K
TARGETS:
4.2K
3.8K
2.8K
Stop loss: above 5.8K/6K (depending on risk tolerance)
LONG SETUP:
Break of 5750
TARGETS:
6.3-6.4K
7.4-7.5K
8.5K
9.9K
Stop loss: Below 5.3K (or lower, depending on risk tolerance).
This is not financial advice. These are just potential setups I'm looking at. Especially since my sell target from my first ever analysis has been reached, I thought I'd post this.
-Victor Cobra
Comment:
One thing that has me leaning cautiously bullish is that the retest of 5.7K took much longer than expected. we had a lot of time to build support in the 3K region, meaning it could be a sign of more strength in the market.
