Educational purposes only. Trade at your own risk.
Each dead cat bounce since our initial capitulation at $6000 back in February has caused a breakout, however what is most interesting is each bounce has reached 14-15% less than the previous high on the way down. You can't draw a straight line to connect these due to the timeframes, but it's quite obvious what has happened.
We have been in this consolidation zone for way longer than any other time period and it's tighter than in previous consolidation periods (look at June/July).
Overall I am bearish but a good trader looks at everything as a whole. Shorts are basically at an all time high on Bitfinex and we're about ready to squeeze a bit. If we break upward, it will cause shorts to close as people anticipate a full on bull run.
Trade carefully and manage risks appropriately. Most importantly, watch what happens at $7,250... if we get there. If we do, it likely needs to happen before the end of August.
Each dead cat bounce since our initial capitulation at $6000 back in February has caused a breakout, however what is most interesting is each bounce has reached 14-15% less than the previous high on the way down. You can't draw a straight line to connect these due to the timeframes, but it's quite obvious what has happened.
We have been in this consolidation zone for way longer than any other time period and it's tighter than in previous consolidation periods (look at June/July).
Overall I am bearish but a good trader looks at everything as a whole. Shorts are basically at an all time high on Bitfinex and we're about ready to squeeze a bit. If we break upward, it will cause shorts to close as people anticipate a full on bull run.
Trade carefully and manage risks appropriately. Most importantly, watch what happens at $7,250... if we get there. If we do, it likely needs to happen before the end of August.