Price is currently resting at previous support circa 3730.
We are still just about inside the red upwards channel, but I can't see that lasting for very long. Who would possibly want to be buying after such a huge drop?? Only scalpers and bots at lower time frames IMO .
Now ideally, we want to see a retracement before going short, but we may not get one. The current price action (shown in the red box) is holding for now, but could be forming a continuation flag. If it does, then a measured move of a similar size to yesterdays candle is not out of the question.
Oh what a conundrum!
I'm going to enter a momentum short on a break of support.
I will also place a short from the previous at 3860 should BTC retrace as high as that. I certainly can't see it getting any higher than fib 38% (3903) and I'll tuck my SL above the fib 50% for good measure.
Target is a red around 3450. I'd aim for the Weekly 200 MA, but traders might take profits before then (as they did on the 6 feb which caught me out)
Disclaimer: Without a good retrace, this is a bit of a risky play. However, I think that the risk/ reward favours a bear move. I can't foresee any significant move higher until bulls regain some confidence.
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Liquidation price: 3988
SL moved to BE