What's up everyone, let me break down my chart for you.
Got filled at the top of the triangle resistance @ $6,792.3, with a few profit targets in mind.
We are closing in on a narrowing range, weekly Bbands getting tight and recently the 1D Bbands contracted to levels we haven't seen since 2016. With this push upwards, BTC was able to stretch the Bbands to the upper side.
Historically, $6800 has been an immense amount of resistance and right now the best place for a short entry R:R wise and to mitigate risk. With the range tightening, we are bound to see some by sometime in end of October ( Triangle meets ). Although I'm confident this is going to break up eventually, I want to reduce exposure, I went ahead and shorted last night.
We currently have horizontal resistance sitting between $6570-$6580 where we bounced off two times earlier today. If $6570 falls, I'm expecting a retest of our previous low from September 25th @ $6330. $6330 is also where we currently also break through ascending support ( Blue ). A clean break of that with high volume should result in a retest of the $6100-$6211 range. $6200 has been a great place to open a long, but I would not be opening a long there because i believe it wont hold.
We had a double bottom on Sept 19th @ 6098 with confirmation of a break of $6570, which is the horizontal we are testing now.
Our long term support line ( Green ) at the bottom which has now been tested 4 times is ideal spot for a long entry. With orders stacked from $6055-$5935, that's the place I'm looking to get filled. If we happen to get down there, i would like to see a quick rebound with a daily close above preferably $6200 where I think the bottom is found, but If we fall down there with lack of bounce, Ill most likely close with intentions of it heading lower.
The Daily RSI is over 46, which has been resistance since our rise up and fall from 20k. During our dip to $6330 on Sept 25th, the RSI held up at the mid 40's level nicely. RSI has now reset on all time frames lower then the 3H, but the 3H and 4H our almost back to neutral, making me feel a little uneasy in my short. This could very well be where we see a break through the triangle to retest our local high's, but none of this matters until our local high's are broken. As far as I'm concerned, its pre mature to call the bottom unless $7400 is broken with a push up to $8200+
Whats my exit plan? I have some more short orders stacked under our triangle line, where I'll exit peacefully above that line. I dont expect this line to fall easily, so shorting it is a good play. I wont be longing the breakout either. I dont plan on longing above $6800 until either A) the 200D MA is breached or B) $7500 is broken. Ill be looking to short both of those as well.
Good luck!
Got filled at the top of the triangle resistance @ $6,792.3, with a few profit targets in mind.
We are closing in on a narrowing range, weekly Bbands getting tight and recently the 1D Bbands contracted to levels we haven't seen since 2016. With this push upwards, BTC was able to stretch the Bbands to the upper side.
Historically, $6800 has been an immense amount of resistance and right now the best place for a short entry R:R wise and to mitigate risk. With the range tightening, we are bound to see some by sometime in end of October ( Triangle meets ). Although I'm confident this is going to break up eventually, I want to reduce exposure, I went ahead and shorted last night.
We currently have horizontal resistance sitting between $6570-$6580 where we bounced off two times earlier today. If $6570 falls, I'm expecting a retest of our previous low from September 25th @ $6330. $6330 is also where we currently also break through ascending support ( Blue ). A clean break of that with high volume should result in a retest of the $6100-$6211 range. $6200 has been a great place to open a long, but I would not be opening a long there because i believe it wont hold.
We had a double bottom on Sept 19th @ 6098 with confirmation of a break of $6570, which is the horizontal we are testing now.
Our long term support line ( Green ) at the bottom which has now been tested 4 times is ideal spot for a long entry. With orders stacked from $6055-$5935, that's the place I'm looking to get filled. If we happen to get down there, i would like to see a quick rebound with a daily close above preferably $6200 where I think the bottom is found, but If we fall down there with lack of bounce, Ill most likely close with intentions of it heading lower.
The Daily RSI is over 46, which has been resistance since our rise up and fall from 20k. During our dip to $6330 on Sept 25th, the RSI held up at the mid 40's level nicely. RSI has now reset on all time frames lower then the 3H, but the 3H and 4H our almost back to neutral, making me feel a little uneasy in my short. This could very well be where we see a break through the triangle to retest our local high's, but none of this matters until our local high's are broken. As far as I'm concerned, its pre mature to call the bottom unless $7400 is broken with a push up to $8200+
Whats my exit plan? I have some more short orders stacked under our triangle line, where I'll exit peacefully above that line. I dont expect this line to fall easily, so shorting it is a good play. I wont be longing the breakout either. I dont plan on longing above $6800 until either A) the 200D MA is breached or B) $7500 is broken. Ill be looking to short both of those as well.
Good luck!