BTC Trading opportunities

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
12971 43
Hi All,

I will try to be more objective in this TA, although I am still leaning towards bearish . Below I have provided the reasons behind the bearish and bullish scenario and how I would trade for the two scenarios:

On the bearish side:
1.First and most importantly, we are still inside of the downtrend channel . The price pump in the last few days were mainly caused by short squeeze. Yes, there were some big orders, but it might be because the whales want to pump the price to create short squeeze and refuel their BTC for the incoming dump. And then buy it back cheap.

2. BTC is in this upward flag, the breakdown is likely. If BTC does break the upward flag to the downside, then we will need to see how BTC reacts to the $7.6k, $7.2k, $6.8 & $6.4k support level . If those levels don’t hold, then $4.4k is definitely on the cards.

3.On the 1, 2, 3, 4 & 6 hour chart, RSI are all showing bearish divergence, price is going higher high while RSI is going lower high

4.In terms of the 4hr MACD , just when BTC is about to having a bullish crossover, it got rejected hard. This could mean that the sell pressure is still there. On the daily MACD , it is still below 0, so technically a buy signal is not confirmed until the daily MACD goes above 0.

5.Similarities between 2014 and 2018. I am not saying it will definitely play out because fractals will end at some point. However, I do think it is worth mentioning about the similarities. The bots still work the same way applying the same/similar logic. I can see people having 3 main arguments towards the 2014 price action continue playing out. 1. The market cap now is much bigger compare to 2014. Well, if the market cap is much bigger now, doesn’t it mean that the whales have more proportion of the market cap now than back in 2014 as they have been making more and more profits since the crash in 2014 and the 2018 crash? 2. The crash in 2014 was caused by Mt Gox hack. Well, who says that it won’t happen again? You already saw on the 6th March how easy it is for the whales to manipulate the market. 3. Timescale. Fractals are repetitive patterns that play out on different levels. If you look at the chart below which I overlay the 2014 chart on top of 2018, you can notice the similarities between the two. And, if you compare the timescale, the 2018 is almost exactly 3 times faster than the one in 2014.

6.Sentiment – people now talks about that the market is strong and start FOMOing. Have you not just been through the crash that happened months ago? Everybody was so positive back in Dec 17 calling the moon and lambo, then what happened? Sentiment can change any second with one single news or event. And what makes you so confident that the bottom is in? People are so confident now only because the price is going up. They said – “I wish I have bought BTC when it was 6k or 6.4k or whatever price” Really? You would? You said that because you already knew the price has already gone up. What if it didn’t? Wouldn’t you say – “I wish I didn’t buy BTC at 6k. I could have bought it at 4.4k”. It’s simple psychology. So, stop FOMOing and wait for confirmation.

7.The price has been going up every day for the last several days. You can’t even see that in a bull run. Plus, when the price went down it always happen before the new day starts. So, every day shows green. That looks quite manipulated to me.

On the bullish side:
1. If either the 0.786 retrace ($7230.5) or 0.886 retrace ($6655.5) can hold, and rebounce, that's a buy signal. These 2 levels are quit a support level . Plus, the 0.886 retrace is also at the bottom of the gigantic triangle in black.
2. On daily MACD , if MACD goes above 0. It is also a technical buy signal
3. Sentiment. Many people are now bullish . If there is no panick/no bad news. People are going to HODL
4. If the number of short contracts are still high, the bears might as well just start a new bull run
Comment: How would I trade?

On the bearish side, I would open my short positions when:
1. BTC gets rejected by the daily EMA200 and/or the top of the downtrend channel. You can see that the EMA200 is now converging with the top of the downtrend channel. So, that should be a very strong resistance.
2. BTC has tried a few attempts to break above the blue trendline (around $8450) that connects the low on the 15th Sep and 6th Feb, and got rejected. BTC might have another attempt to break above the trendline and if it gets rejected again and starts to drop, I will then open my shorts with SL right above the trendline.
3. Then I will take profits at each support level, $7230, $6656, $6000 & ultimate target at $4400.

On the bullish side, I would enter my long positions when:
1. Breakout of downtrend channel is confirmed, and ideally retested.
2. BTC goes above the high on the 21st March @ $9177.5
3. If BTC retraces back to the bottom of the gigantic triangle in black @ $6655 and confirming it as a support
4. 1.272 retrace @ $4436

Taiwan Bear

Please note this post is provided for informational purpose only. It is not a financial advice to buy/sell.

Some tips for you:
- Set up an entry/exit strategy for every trade, with the ideal risk/reward ratio (2+)
- Understand that every trade carries a risk, and don’t expect you can make profits from every trade
Comment: Close up look:
Comment: Hi all,

Just to provide a possibility that there might another leg up to test the top of the downtrend line @ $8560.

Comment: BTC has attempted the top of the downtrend channel once. It may attempt a second time. If you currently have short positions, there are 3 resistances above: $8560, 8665 & 9177.5. Please set your SL according to your risk/reward ratio.

If BTC gets above $9177.5, BTC will be making a higher high which probably means the start of a new bull run.

Comment: Just to confirm, 7.4k-7.6k is my first TP target.
4.4k is still my ultimate target.
Comment: BTC hit right on the target $9064.

Comment: The drop now doesn't mean that BTC is 100% going down from here. Always set up an exit strategy. I have set my SL on my short positions at $9064.
Comment: Just saw something interesting - on Bitstamp, BTC is still inside the downtrend channel. And it looks like BTC is following & respecting the trendline closely. I don't think it's a coincidence.

If you would like to know more, go and check @chewner 's latest TA.

Comment: HI All, BTC has formed both an ascending wedge and an ascending triangle. One is bearish while the other is a bullish formation. So, until breakout of one formation, there is no clear signal as to which direction it will go.

If it breaks to the upside, I expect another short squeeze happening as I believe there is quite a few SL set around $9.2k - $9.3k for short positions. If this happens, BTC might go up to $10.5k.
If it breaks to the downside, I would expect BTC to correct to around the 8-8.5k price level. And if this happens, whether BTC will go straight to 4.4k from 8k, will have to be assessed once BTC hits the 8k price level.

Comment: And my target is still 4.4k
Comment: Hi Guys, I have received quite a few PM asking whether BTC will go up or go down from now. The chart below is what I think at the moment. I am still waiting for more confirmation. The drop from 9.8k does not make much sense to me psychologically. The shorts, especially on BCH has gone parabolic which I am quite concerned whether the current price action is just another bear trap. Overall, I am still bearish as I don't see much evidence of a new bull run.

Any plans on a BTC update?
+1 Reply
Yeah, an update would be nice :)
+1 Reply
@ladybug_, Will update soon.
@BDVB, Will update soon.
Hey taiwan bear, thanks for the chart everytime, but Here is one thing i want to ask. Few weeks ago, I saw your comment on how you have insider info of btc will dump to 4.4k. But I’m 100% sure that it will surge up to 11000 this week and this is based on my TA and infos. Would you be able to advise me why you are still leaning towards short? Ruthlessly saying if this is just based on your TA, it’s kinda useless
@junh96, I got the date wrong, but 4.4k is still my target. And if you see my latest updated idea, you can see that I am expecting a possibility of another bear trap to 10.5k, before the drop to 4.4k.

People can FOMO as much as they want, but me and most of the good traders that I know of all expect a drop below 6k.

+3 Reply
leorio Taiwan_Bear
@Taiwan_Bear, thanks my taiwan bear bro
you are my crypto ta hero
lets go down to 2k :))))
+1 Reply
ladybug_ Taiwan_Bear
@Taiwan_Bear, What makes you believe we are going to 4.4k apart from the charts? Is it some kind of inside information?
@ladybug_, From a TA perspective
ladybug_ Taiwan_Bear
@Taiwan_Bear, it seems like we are in a new bull run. What do you think?
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