Yesterday I was watching closely as the price of Bitcoin approached the 26 day downtrend (red dotted). I was preparing for resistance from that trend line to cause a breakdown of the 5 month triangle (purple) and sell off to $5,000.
I have been selling spot Bitcoin and Ethereum over the past 48 hours with the intention to buy back. My first order set at $7,550 resistance and then I executed another order at $7,437 as we appeared to be creating a lower high as well as a descending scallop. I also sold some ETH at $565.99 under the same premise.
Now that we have made it through the downtrend I am setting my sights on $8,850. I expect us to rally for a couple weeks and retest that price around 6/13 - 6/15. At that point we will be met with major horizontal and trend resistance.
Right now the plan is to hold off on selling any more spot until that area. Once we get there I will be ready to confidently unload the rest of my trading roll (<10% of my overall roll). I also have my order open to short if/when we fall below $7,025 and I will consider opening that position at $8,850 based on the risk:reward.
It can be very tempting to open a long in the meantime, but for me that is overtrading. Furthermore, this could still easily be a bull trap. I updated the post from yesterday to say that the conditions are ripe for a trap over the weekend when there will be lower liquidity and thin order books.
If it is not a trap then we will rally to $8,000 - $8,200 over the next 5-7 at a minimum and will be very likely to retest resistance $8,850.
Until next time trade happily and keep in mind that likes/comments/follows are greatly appreciated!
I have been selling spot Bitcoin and Ethereum over the past 48 hours with the intention to buy back. My first order set at $7,550 resistance and then I executed another order at $7,437 as we appeared to be creating a lower high as well as a descending scallop. I also sold some ETH at $565.99 under the same premise.
Now that we have made it through the downtrend I am setting my sights on $8,850. I expect us to rally for a couple weeks and retest that price around 6/13 - 6/15. At that point we will be met with major horizontal and trend resistance.
Right now the plan is to hold off on selling any more spot until that area. Once we get there I will be ready to confidently unload the rest of my trading roll (<10% of my overall roll). I also have my order open to short if/when we fall below $7,025 and I will consider opening that position at $8,850 based on the risk:reward.
It can be very tempting to open a long in the meantime, but for me that is overtrading. Furthermore, this could still easily be a bull trap. I updated the post from yesterday to say that the conditions are ripe for a trap over the weekend when there will be lower liquidity and thin order books.
If it is not a trap then we will rally to $8,000 - $8,200 over the next 5-7 at a minimum and will be very likely to retest resistance $8,850.
Until next time trade happily and keep in mind that likes/comments/follows are greatly appreciated!
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