Last couple of charts we have been watching for the consolidation. We've had plenty of warning signs the bulls were running out of steam and bears were stepping in. We had our quick bull break to $9090 and then a strong bearish reversal in price action and heavy bearish volume. That was our first real red flag.
The bulls barely clung on to 12 EMA support on daily chart and eventually did lose it and are now under 26 EMA as well on daily.
We have seen bulls lose the uptrend of higher lows and higher highs and have now shifted to lower highs and lower lows on daily.
As stated few days, I am in no rush to re-enter positions since my exit in the upper $8000's on BTC and we are now fighting a downward trend on most time frames. We once again need to start seeing the hourly, then 4 hour, then daily reverse the trend to regain higher lows and higher highs. Outside of oversold bounces for quick flips for profits, not seeking to hold anything for longer swing positions until we begin to see the trends change.
If I were zooming out onto weekly and looking for consolidation and seeking to bottom fish a position, anything around $6700-7000 would be a nice healthy area in my opinion. I'm personally not seeking to catch a bottom here and would much rather take the safer route of waiting for trends to change favorably for the bulls before re-establishing any swing positions. As a trader, price is irrelevant to me on a bigger picture, its all about safe/low risk entries and not trying to catch bottoms for buys or tops for sells. If seeking oversold positions for quick trades, its still not an ideal scenario where your risk/reward setups are just not great but can be a way to pick up small but quick profits. Or play the patience game. Wait for the 4 hour or whatever your preferred time frames are to change their trend to bullish with higher lows and higher highs which gives a much strong risk/reward relationship.
Just My 2 Sats!
The bulls barely clung on to 12 EMA support on daily chart and eventually did lose it and are now under 26 EMA as well on daily.
We have seen bulls lose the uptrend of higher lows and higher highs and have now shifted to lower highs and lower lows on daily.
As stated few days, I am in no rush to re-enter positions since my exit in the upper $8000's on BTC and we are now fighting a downward trend on most time frames. We once again need to start seeing the hourly, then 4 hour, then daily reverse the trend to regain higher lows and higher highs. Outside of oversold bounces for quick flips for profits, not seeking to hold anything for longer swing positions until we begin to see the trends change.
If I were zooming out onto weekly and looking for consolidation and seeking to bottom fish a position, anything around $6700-7000 would be a nice healthy area in my opinion. I'm personally not seeking to catch a bottom here and would much rather take the safer route of waiting for trends to change favorably for the bulls before re-establishing any swing positions. As a trader, price is irrelevant to me on a bigger picture, its all about safe/low risk entries and not trying to catch bottoms for buys or tops for sells. If seeking oversold positions for quick trades, its still not an ideal scenario where your risk/reward setups are just not great but can be a way to pick up small but quick profits. Or play the patience game. Wait for the 4 hour or whatever your preferred time frames are to change their trend to bullish with higher lows and higher highs which gives a much strong risk/reward relationship.
Just My 2 Sats!
