Yesterday I had hope that we would get another bounce, mainly due to shorts reaching a new all time high. I was also crossing my fingers for the triangle to give us support and I mentioned that it would get ugly fast if it didn’t.
I’m happy to see that we held support and shorts are at a new all time high! Right now we are heading for a retest of the 50 day SMA at $6,950. If we can break through that then it should trigger a lot of stop losses.
At that point the squeeze would be on and it would be massive! There are over 35K coins short and that is the type of rocket fuel needed to turn around a market as bearish as this one.
Going long here with a stop loss set at $6,649 seems pretty attractive. However, where do you take profit? I think there is too much resistance at $7,000 - $7,200 to realistically set the profit target at $7,500.
For me it is still too risky to open a long right now. I am waiting for a close above $7,500 or a dip to $5,000 and then I will feel comfortable going long. Until then I will wait patiently on the sideline and remind myself of a Peter Brandt adage:
“Trading is done in between the 20 yard lines.”
I hope you have a great day and always remember that following is free!
I’m happy to see that we held support and shorts are at a new all time high! Right now we are heading for a retest of the 50 day SMA at $6,950. If we can break through that then it should trigger a lot of stop losses.
At that point the squeeze would be on and it would be massive! There are over 35K coins short and that is the type of rocket fuel needed to turn around a market as bearish as this one.
Going long here with a stop loss set at $6,649 seems pretty attractive. However, where do you take profit? I think there is too much resistance at $7,000 - $7,200 to realistically set the profit target at $7,500.
For me it is still too risky to open a long right now. I am waiting for a close above $7,500 or a dip to $5,000 and then I will feel comfortable going long. Until then I will wait patiently on the sideline and remind myself of a Peter Brandt adage:
“Trading is done in between the 20 yard lines.”
I hope you have a great day and always remember that following is free!
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