Hello traders,
We are back with an update on Bitcoin. Earlier today, our call to short BTC seemed a bit unlucky but these things can always happen. Only paper traders never make mistakes! And before we forget, we only lost a very small amount. Elliott wave is an excellent tool for risk/position management. If you know what you are doing, you can use it to cut your losses very quickly. But enough about that. Let's get down to business!
Yesterday, we told you guys that we were bearish on BTC and that point of view hasn't changed at all. But have to admit that we were a bit too early.
Why are we bearish?
Well, the decline from $ 4200 to $ 3600 happened in five waves. By doing so, the market tells us that we need to see another leg down after a small bullish retracement. Currently we are in that bullish retracement.
The trade
Today's move was impulsive so we expect another move upwards after completion of the current fourth wave.
In other words: We will take a bull position in the $ 3778-$ 3801 range with a hard stop beneath $ 3760. Our minimum target is the $ 3908 - $ 3964 range
STOP: $ 3760
ENTER: $ 3778 - $ 3801 range
TARGET: $ 3908 - $ 3964 range
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
We are back with an update on Bitcoin. Earlier today, our call to short BTC seemed a bit unlucky but these things can always happen. Only paper traders never make mistakes! And before we forget, we only lost a very small amount. Elliott wave is an excellent tool for risk/position management. If you know what you are doing, you can use it to cut your losses very quickly. But enough about that. Let's get down to business!
Yesterday, we told you guys that we were bearish on BTC and that point of view hasn't changed at all. But have to admit that we were a bit too early.
Why are we bearish?
Well, the decline from $ 4200 to $ 3600 happened in five waves. By doing so, the market tells us that we need to see another leg down after a small bullish retracement. Currently we are in that bullish retracement.
The trade
Today's move was impulsive so we expect another move upwards after completion of the current fourth wave.
In other words: We will take a bull position in the $ 3778-$ 3801 range with a hard stop beneath $ 3760. Our minimum target is the $ 3908 - $ 3964 range
STOP: $ 3760
ENTER: $ 3778 - $ 3801 range
TARGET: $ 3908 - $ 3964 range
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Trade active:
We missed our entry by a few dollars.
i.imgur.com/V8Y6nNc.png
We took a small position in the $ 3830 range. We will add when it comes back down again.
i.imgur.com/V8Y6nNc.png
We took a small position in the $ 3830 range. We will add when it comes back down again.
Comment:
That was a nice and quick spike up. Nice short term trade :)