The daily chart looks primed to trigger buy signal, but is this the time to trade? The chart above is the 8 hour, but there is the clear formation of an outside bar on the daily. To be clear in the long term we are still moving higher, but at a critical resistance level , with only a shallow correction, trading here is risky. Keep in mind I am a more conservative trader and since these types of setups are prone to fake-outs I just stay clear. Those that have more risk tolerance may take this as a day or scalp trade for a few hundred points, but I would rather take longer term swing and positional off of support then trade right into multiple resistance levels.
Now if your a day or scalp trader there is a setup, but keep in mind the following (which is the reason I show the 8 hour chart here and not the daily).
1st we broke the shorter term trend line and failed to break back through off a shallow correction. It is not uncommon to see a retest of the trend line and pullback which could be sharp.
2nd though Bitcoin' could make another run up through the trend line , both the 0.238 retrace from the overall correction, along with several other levels overlap between 9200 and 9700 which creates a wall of resistance, and we are trading slightly above the median of this tight range. This is a flag in my opinion. But there is one more reason.
IF the 5th wave extends to the 10,500 to 11300 we likely see a broader 3 leg correction of the overall swing from 6600. The 0.618 from 11,300 is around 8300. In simple terms we likely revisit these levels again so why take unnecessary risks?
There is the possibility we continue straight up from here and Bitcoin 3.96% is notorious for this. Since we already have 2 trades from the 13.5 area, we are positioned long term with our core portfolio, there is no need to take unnecessary risks, especially when it is likely we get an opportunity at these levels again. This is why we let the market prove itself before we start increasing positions.
In closing there is always a trade somewhere and we are looking at a few other trades and will post on S.C. There is a particular trade in silver 0.06% that we have been waiting for.
Now if your a day or scalp trader there is a setup, but keep in mind the following (which is the reason I show the 8 hour chart here and not the daily).
1st we broke the shorter term trend line and failed to break back through off a shallow correction. It is not uncommon to see a retest of the trend line and pullback which could be sharp.
2nd though Bitcoin' could make another run up through the trend line , both the 0.238 retrace from the overall correction, along with several other levels overlap between 9200 and 9700 which creates a wall of resistance, and we are trading slightly above the median of this tight range. This is a flag in my opinion. But there is one more reason.
IF the 5th wave extends to the 10,500 to 11300 we likely see a broader 3 leg correction of the overall swing from 6600. The 0.618 from 11,300 is around 8300. In simple terms we likely revisit these levels again so why take unnecessary risks?
There is the possibility we continue straight up from here and Bitcoin 3.96% is notorious for this. Since we already have 2 trades from the 13.5 area, we are positioned long term with our core portfolio, there is no need to take unnecessary risks, especially when it is likely we get an opportunity at these levels again. This is why we let the market prove itself before we start increasing positions.
In closing there is always a trade somewhere and we are looking at a few other trades and will post on S.C. There is a particular trade in silver 0.06% that we have been waiting for.
