Hi everyone, in this analysis I will explain why I opened short position when BTC was rejected at 17.4K level which was upper band of rising wedge/diagonal resistance and 4h 200 EMA. Before that I noticed ABCD pattern which started forming at 15.5K swing low in 22 November/ A point/ and finished at 17256 in 01 December/ D point/. BTC rejected at the mentioned zone with liquidity hunt above D point then strong rejection with bearish engulfing candle=RSI bearish divergence + momentum losing+ rising wedge pattern breakdown. My first target will be at 0.618 fib level /16.5K/ which is horizontal+ diagonal support at the same time. If price can't hold 16.5K C point will be my 2d target for ABCD pattern and 100% projection of CD wave. I don't expect BTC to go lower. If you pay attention to the volume bars, there is no buying pressure. Let's see how BTC reacts at 16.5K support level. Don't forget to put always stop losses.
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I closed half part of my position and moved my stop loss at breakeven bcz of selling volume decrease.
Trade closed manually
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I closed all my position at 16.8 which has been opened at 17.3K coz of pin bar at diagonal support with buying pressure.
That's a great idea! In the current state of market, this asset is not the easiest to predict but you explained it pretty well. Thank you very much for posting!
ergal91
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@SwallowPremium, Thanks for your comment brotha, I hope you read updated tweets why I closed my position at 16.8K before the pump started.
ergal91
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@SwallowPremium, I uploaded the photo at which you can see why I closed my short at 16.8K after pin bar at diagonal support trendline.