unspecial

Bitcoin - showing signs of weakness.

Short
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
I've just stepped out of my Bitcoin long at 11280. This is just taking too long to break thru the overhead resistance and I'm now seeing many signs of weakness. I expect prices to drop from here and it's best to be nimble as a trader. You can see a staircase pattern with the dotted lines I've drawn on the 2h chart. Those steps (difference in levels) are getting smaller and the last 2 have been below the centre blue line. You can also see the green filled areas (strong uptrend when bars clear the +2% line) have completely disappeared in the last 48hrs and the slope of the moving average is flattening out. All these are signaling that we have come as far as we are going to with the current rally (since 26th Feb). Now the bulls (me) are taking a rest and keeping their powder dry.
I've drawn a couple of dotted lines on the right to project where I expect the slope (trend on the two hour chart) to go next. How far this correction will drop is anyones guess right now (it could easily last a week). I am still very bullish long term for bitcoin and don't like shorting it here. ( a day trader would).
Comment: In one 2 hr bar this dropped over $1200. Low of 9400. Currently 9900. It fell very fast, penetrated my -11 % line and had a quick bounce. I'm expecting that low to hold. While sleeping my buy order was filled at 10,300. Placing stop now at 9400. Will trade this according to price action. 9400 might be the bottom BUT as stated last time this correction could last a week before it finds the bottom.
Comment: Found out that Binance exchange was hacked. This is a good reminder that no matter how good your technical anylsis is, external news events can move the market against you very quickly. I'm sitting tight now on my long as this news is done. Stop now at 9450.

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