The recent major rejection to the upside on the 15th might be the start of a move that gets BTC out of the squeeze consolidation it's stuck in.
I'm watching for it to break to the downside signficantly below the support region at 6300.
If it tags the 5k region that will be a good area to expect the start of the 2 leg.
From there I will be looking for a "support becomes resistance" style trade in which a test of the old 6300 support region is rejected and it continues downside movement to the 4k area.
The red box on the chart at 6300 is the only thing I'm really interested in regarding cryptos at the moment.
There is also a chance that it will break to the upside but I don't think that will happen without first clearing out the empty air pocket below the big triangle it's in.
I'm watching for it to break to the downside signficantly below the support region at 6300.
If it tags the 5k region that will be a good area to expect the start of the 2 leg.
From there I will be looking for a "support becomes resistance" style trade in which a test of the old 6300 support region is rejected and it continues downside movement to the 4k area.
The red box on the chart at 6300 is the only thing I'm really interested in regarding cryptos at the moment.
There is also a chance that it will break to the upside but I don't think that will happen without first clearing out the empty air pocket below the big triangle it's in.
Comment:
BTC dumped out today. I would not chase it. The style of trade that I think have the best chance of working is to wait for it to dump so far that people think it's not coming back, then it will rally all of a sudden into the old support zone around 6300. That will be the area I will be looking to actually take a short. Chasing it here is a bad idea!
