After that steep selloff we had in Bitcoin down to around 25k I anchored a VWAP to that day to see if we could hold above it to gauge the strength of the market coming off that low. I also kept up a simple 10 day moving average to gauge the trend of the market. The entire rally off the low we held below the 10 day moving average and as of today we failed to hold above the Anchored VWAP. Both of those are signals of weakness to me and adding to that my Bollinger Bands are also telling me that the market still favors the short side. This area for me is pretty good risk reward as I will stay with the shorts until a daily close above the 10 day moving average or a violation of the recent high off the lows around 31,000. As I recorded today we are right around 29,100 and I am slowly getting in to the short side looking for a possibility of the 25,000 low to be tested and possibly even lower prices following that. I mentioned in the video I am using Micro Bitcoin Futures to execute my shorts. I am also executing my trades on TradeStation which you can connect to TradingView to trade spot, futures and crypto.
Derivatives trading is not suitable for everyone. Past performance is not indicative of future results.
Derivatives trading is not suitable for everyone. Past performance is not indicative of future results.
Comment:
Briefly got above the 10 day moving average yesterday and today it came right back down below the VWAP and the 10 day...bearish action. Now starting to breakdown with US Equities. Could see selling escalate today into the weekend.
Comment:
I mentioned in the video if the bottom bollinger band on the daily chart started to turn back in that I would exit my position. That happened and on the Globex Open we got back above the 10 day ma. I took around a 600 point loss on the positions.