Here we go again with the JUMP with BTC that gets everyone excited! Just because you see a jump does not mean that it is time to buy! The funny thing is that when most trends are in a DOWNtrend, the up movement seems to be more dramatic and believable because of profit taking. Honestly, this market is at a retest area. I am not falling for this. Right now, all i am doing is waiting for the failure of this zone with a nice red wick and its back on the move downwards. Moves like this are funny because your TRYING to fool us but we are smart over here. Wait for the entry and im selling. But right now, we wait for the zone to give a clear story so we can attack!
Hello Akemi, A jump in price like this is unlikely profit taking (which takes place over an extended periods or capitulation events). You also need to consider the price point the move occurred - at weekly support/low of the range. Also the move has high volume. Thus high probability to be buying / trend reversal. Price right now is at a pivot point/4hr 200 MA so considering short entries here makes sense but I would consider longs too as the market is likley moving against the shorts for a few weeks. Best, HF