Well... it played out pretty nicely!
As mentioned in my previous post, we were expecting the bounce to meet resistance between 10.2-10.4k. The bulls tried REAL hard to get it through the .236 fib line and the previous support/resistance level. It nearly got to 10.5k which I didn't quite expect and was slightly nervous with the short opportunity for me coming in at 10.4 but there was just nowehere near the volume needed to break through and then we saw a BIGGG volume sell off between 7-11am UTC.
There was a big time immediate sell off at 7 UTC which tanked the price down to 9.5k (how amazing as a trader that our most stable asset can move 8% of it's $180bn market cap in less than an hour!). The bulls then pushed it back to 10.1k at the close of the 1h candle. We then saw further sells taking it down to the magical .382 fib level. This is a really key level and we are seeing it be tested as support. Other than closing a short from 10.4k, I would advise monitoring here as there's a chance it gets a bit choppy. We need to see if the support continues to hold so I'd be patient with this one and let the trade come to you. Keep monitoring volume, but i'd expect .382 to be tested a few times and ultimately for it to break when the volume is strong enough.
I know I know... it's blasphemy to say you want BTC to retrace down, but if we are thinking long term this is what we need. IF we see a retrace to .500 (or even .618) then we are looking at a lovely bullish setup in mid-March!
As mentioned in my previous post, we were expecting the bounce to meet resistance between 10.2-10.4k. The bulls tried REAL hard to get it through the .236 fib line and the previous support/resistance level. It nearly got to 10.5k which I didn't quite expect and was slightly nervous with the short opportunity for me coming in at 10.4 but there was just nowehere near the volume needed to break through and then we saw a BIGGG volume sell off between 7-11am UTC.
There was a big time immediate sell off at 7 UTC which tanked the price down to 9.5k (how amazing as a trader that our most stable asset can move 8% of it's $180bn market cap in less than an hour!). The bulls then pushed it back to 10.1k at the close of the 1h candle. We then saw further sells taking it down to the magical .382 fib level. This is a really key level and we are seeing it be tested as support. Other than closing a short from 10.4k, I would advise monitoring here as there's a chance it gets a bit choppy. We need to see if the support continues to hold so I'd be patient with this one and let the trade come to you. Keep monitoring volume, but i'd expect .382 to be tested a few times and ultimately for it to break when the volume is strong enough.
I know I know... it's blasphemy to say you want BTC to retrace down, but if we are thinking long term this is what we need. IF we see a retrace to .500 (or even .618) then we are looking at a lovely bullish setup in mid-March!