BTC - wait for a break of these intersections to short.
1. We have a classic tweezer top here with a firm bearish engulfing bar and volume to confirm the honesty of that price move. On technicals, this is extremely bearish. The entire movement of price completely enveloped the 3 previous days trading ranges.
2. The volume profile here is especially telling. The VPOC (Volume Point of Control) is waaaay down at the 2700 area and there is a desert of volume between 2900 and 4000, that is just a vacuum. If the VPOC is like a magnet trying to get price to return to the value area, then this may be one of the biggest drops in recent memory. Pay special attention to the very top of the price range, look at how little participation has been up there. Trapped longs would get decimated.
3. The 200 MA. Price generally likes to move towards it for confirmation of moves and rejection of moves. We are a significant distance from that MA.
4. Price is as at an important level. Price has respected the Gann fan line and has been trading between the 1/1 and the 2/1. Right at 4360 we have an intersection of the .236 Fib area and the 2/1 Gann fan line. This is where I am shorting.
5. If price breaks below and holds, probabilities are that price will move south until the next Fib line for some testing of support. I would set my first profit target at the intersection of the .382 and 3/1 Gann fan line.
Also consider this: for a fundamental reason for a short bias, news has come out the IRS is starting to go after profits from cryptocurrencies, specifically BTC.
2. The volume profile here is especially telling. The VPOC (Volume Point of Control) is waaaay down at the 2700 area and there is a desert of volume between 2900 and 4000, that is just a vacuum. If the VPOC is like a magnet trying to get price to return to the value area, then this may be one of the biggest drops in recent memory. Pay special attention to the very top of the price range, look at how little participation has been up there. Trapped longs would get decimated.
3. The 200 MA. Price generally likes to move towards it for confirmation of moves and rejection of moves. We are a significant distance from that MA.
4. Price is as at an important level. Price has respected the Gann fan line and has been trading between the 1/1 and the 2/1. Right at 4360 we have an intersection of the .236 Fib area and the 2/1 Gann fan line. This is where I am shorting.
5. If price breaks below and holds, probabilities are that price will move south until the next Fib line for some testing of support. I would set my first profit target at the intersection of the .382 and 3/1 Gann fan line.
Also consider this: for a fundamental reason for a short bias, news has come out the IRS is starting to go after profits from cryptocurrencies, specifically BTC.