Over the last month, we have seen the crypto market surge upwards. I've drawn a trend and upper channel line in the chart above to find entry and exit points. Friday's dump was a curse and a blessing, some of us may have lost but the channel is clearer now.
We have entered at 8300, and is now our stop loss after having that position for a few days. If BTC does pick up, 9300 would be a good exit, as that is the top of the channel. It is a good idea to play it by ear as the market moves as well. If volume is strong and the bulls seem intent on taking $10k, we will not be exiting. The Bitcoin market can defy all odds and while exiting at the top of the channel is rational, we have to remember that $10k is a big psychological number for the market. That can cause irrational exuberance in the volume and price.
Alternatively, if the price falls under 8300 on strong volume, that would break the trend that has been established over the last month. In which case, it's possible we head into the $7k range again for a while before moving up. If the price stays under 8300 for a few hours, that would be enough of a confirmation for us to expect the price to go lower.
In 12 hours or so, we will take another look and raise the stop loss if necessary. Good luck everyone!
We have entered at 8300, and is now our stop loss after having that position for a few days. If BTC does pick up, 9300 would be a good exit, as that is the top of the channel. It is a good idea to play it by ear as the market moves as well. If volume is strong and the bulls seem intent on taking $10k, we will not be exiting. The Bitcoin market can defy all odds and while exiting at the top of the channel is rational, we have to remember that $10k is a big psychological number for the market. That can cause irrational exuberance in the volume and price.
Alternatively, if the price falls under 8300 on strong volume, that would break the trend that has been established over the last month. In which case, it's possible we head into the $7k range again for a while before moving up. If the price stays under 8300 for a few hours, that would be enough of a confirmation for us to expect the price to go lower.
In 12 hours or so, we will take another look and raise the stop loss if necessary. Good luck everyone!