Yesterday I added to my short after the hanging man candle closed on the 4 hour and said that I expect the top wick to mark the peak of this rally at $6,345. Six consecutive red candles followed and now we are back below $6,250 resistance.
We just had a bearish cross on the 12 & 26 period EMA’s on the hourly chart. As you can see below that is what immediately preceded the previous sell off.
Additionally we are still fighting a cluster of resistance on the daily chart from the downtrend that started on 5-6 (red line), prior support turning into resistance (white line) and the 12 period EMA (teal).
Over the past 48 hours the price has supported above $6,095 and I am watching for an hourly close below that as a confirmation for the next step down. I expect the momentum to pick up quickly once we get a close below $5,750.
If you are not in a position then opening a short at the current levels of resistance offers a favorable risk:reward. The stop loss is set at $6,876 and that is based on Bill Williams Fractals. The profit target remains $4,975 and that leaves you with a 1.73:1 risk reward ratio.
If you have the ability then shorting alts vs USD and/or BTC is a much better option. ETH:BTC recently broke down the 0.5 FIB level and LTC:USD looks highly likely to pullback to the $50 - $60 level of support.
Thank you for reading! Have a question? Leave a comment! Smash the follow so that you don’t miss out on future updates and remember that clicking the like is good karma!
We just had a bearish cross on the 12 & 26 period EMA’s on the hourly chart. As you can see below that is what immediately preceded the previous sell off.
Additionally we are still fighting a cluster of resistance on the daily chart from the downtrend that started on 5-6 (red line), prior support turning into resistance (white line) and the 12 period EMA (teal).
Over the past 48 hours the price has supported above $6,095 and I am watching for an hourly close below that as a confirmation for the next step down. I expect the momentum to pick up quickly once we get a close below $5,750.
If you are not in a position then opening a short at the current levels of resistance offers a favorable risk:reward. The stop loss is set at $6,876 and that is based on Bill Williams Fractals. The profit target remains $4,975 and that leaves you with a 1.73:1 risk reward ratio.
If you have the ability then shorting alts vs USD and/or BTC is a much better option. ETH:BTC recently broke down the 0.5 FIB level and LTC:USD looks highly likely to pullback to the $50 - $60 level of support.
Thank you for reading! Have a question? Leave a comment! Smash the follow so that you don’t miss out on future updates and remember that clicking the like is good karma!
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