XForceGlobal

BTC: Aftermath of the Pump - Why The Bearish Case Is Still Valid

Short
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
With our previous analysis, we have gotten stopped out with a minor loss - but have taken profits on our long from $9,900 as the risk is now getting higher for longs; however, we predicted perfectly that 11.4K would be the major resistance zone . With that in mind, since we have not broken above 11.4K, we can expect some form of retracement here. If the retracement is complete over the course of several days, we can expect to see the larger picture form. This analysis will not be popular amongst bulls; however, we need to make sure we keep an open bias towards both sides. Once again, here is a complete breakdown of our long analysis:


Technicals:

1. We have closed the CME Futures trading for the week at $11,110 USD. The current price is now trading around $11,400 - this means that we are now forming a possible gap is Bitcoin does not retrace from here. Weekends are usually the biggest opportunities for bulls or bears when it comes to gap creations.

2. We are now creating a bearish rising channel , as predicted from our previous analysis. This of course can be negated, but keep in mind that we need to be very cautious of opening any longs. We can open longs when we get stopped out, then confirm a long position once we retest the upper channel.

3. Volume is rather weak when compared to other days of trading. Please! Please! Please make sure that you are looking at the volume relatively. This is so crucial. We need a major confirmation of a bullish breakout by the bulls, and the first thing is volume in terms of confirmation.

Trade Safe.
X Force

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.