After finally breaking down the ridiculously long and steep wedge that BTC had been following for weeks (blue lines), it is now testing the support that was born on our last local high, around 8.5k (purple dotted line). Should it break, we would most likely be looking at new lows. If it holds, it will have a hard time consolidating the price around 7k, before deciding again what to do.
So what's the play? well, right now you could either go short or long with a VERY close stop loss, since we are testing a HUGE resistance. My choice is SHORT, since we broke that wedge and we still have a long way to go down. But if it holds, this could be the best entry in months, since we would no doubt be testing those 8.5k from weeks ago.
In any case, I firmly believe this is a great place to open up a position, since stop losses are really close. What you CANNOT DO is not set a stop loss, since we could be in for another huge movement.
If it breaks down, my target is, at first, 6700 were I would take a bit of profit, and then I would probably average my way down. I believe a new low is definitely on the table, but I'd rather secure my profits way before that, perhaps wait for a bounce and a reentry.
Trade safe and remember to thump up my post and follow my twitter if you liked this!
So what's the play? well, right now you could either go short or long with a VERY close stop loss, since we are testing a HUGE resistance. My choice is SHORT, since we broke that wedge and we still have a long way to go down. But if it holds, this could be the best entry in months, since we would no doubt be testing those 8.5k from weeks ago.
In any case, I firmly believe this is a great place to open up a position, since stop losses are really close. What you CANNOT DO is not set a stop loss, since we could be in for another huge movement.
If it breaks down, my target is, at first, 6700 were I would take a bit of profit, and then I would probably average my way down. I believe a new low is definitely on the table, but I'd rather secure my profits way before that, perhaps wait for a bounce and a reentry.
Trade safe and remember to thump up my post and follow my twitter if you liked this!