I'm as big a BTC bull as anyone but, this is a likely target for some profit taking. On a positive note, if this does start to pull back everything you're spreading against BTC can start to climb...
Do you consider wave-5 as an ending diagonal (A bit clearer on a 1H chart) ? If so I guess we should expect a retracement between 3800-3600$ right ?
Also, why not shorting BTC here ?
Also, you say everything against bitcoin should climb, but is it still a good idea to keep our positions on alt coins since we know that when BTC falls, everything falls against USD ?
tradedevil
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@lilxam, Hi there; Too soon to call it. The challenge with this count is the lack of good structure in the 5th. There is still a bullish scenario that could well play out over the weekend if this support zone holds. And so far... it has. 3400ish puts it right on the median line and the 200 day MA. That's what I've got as next support if this pullback starts to accelerate. Here's the bullish scenario:
The deeper retracement:
As for the BTC spreads.Sort alts that trade against BTC by % change. Those with good fundamental stories and solid technical structure can start to accelerate. Tough for them to rally with strength when BTC is relentlessly climbing day after day. Very few can out perform BTC. Some have been amazingly strong i.e. NEO for example but they are the few...
CoinGnosis
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@tradedevil, ok i see, thanks a lot for the detailed answer ! But still I'm skeptical regarding the fact that BTC would go over 5k$ before a big retracement. I'd rather see a double top with a RSI divergence. Anyway I've shorted BTC at 3970$ and now have moved my stop loss to breakeven. If I get stopped out I'll re-enter.
FreakonaReef
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When looking at your chart, just under $4450 or slightly less looks right on a stop. Are you thinking a retrace to 3800?
Also, why not shorting BTC here ?
Also, you say everything against bitcoin should climb, but is it still a good idea to keep our positions on alt coins since we know that when BTC falls, everything falls against USD ?