As you can see where I placed the blue arrows on the Momentum indicator and on the Daily time frame chart there is a clear higher high on the daily time frame with a lower momentum indicating a bearish divergance. I have the Fib retracment levels drawn out from the March lows to the recent highs above 7200. My first target on the down side from here is in the 6477 area, looking to see how areas of support are tested here and if there is a reversal approaching or more downside. I would have Stop loss above 7000. Also notice the chart pattern is in the process of printing two upside down hammers in a row.
Comment:
been holding strong, sometimes.takes a day or two for a drop after the momentum divergence shows up, this still could go up higher before it drops to test an area of support. If it breaks and stays over 7000 I'd find a way out of the short.. of it cant break the 6600 area in the next 12 hours I'm going to find a way out and re-evaluate the charts. I'm still keen on seeing a drop to at least the 6477 area. I'm looking to get long BTC for the next 2-3 years from these levels here over the next month or two but as of now we gotta watch and see what happens and trade a little bit in these crazy times.
Trade active:
Comment: been holding strong still; sometimes takes a day or two for a drop after the momentum divergence shows up. this still could go up higher before it drops to test an area of supply and then hit our support levels.. If it breaks and stays over 7000 I'd find a way out of the short since it cant break the 6600 area over about 5 days here so the next 12 hours I'm going to find a way out and re-evaluate the charts if we cant break this 6600 level. I'm still keen on seeing a drop to at least the 6477 area. I'm looking to get long BTC for the next 2-3 years from these levels here over the next month or two but as of now we gotta watch and see what happens and trade a little bit in these crazy times.