Sawcruhteez

BTC:USD 4 hour chart DAILY UPDATE (day 105)

Short
Sawcruhteez Updated   
BITSTAMP:BTCUSD   Bitcoin
On day 93 I made an important update after changing my short term outlook to bearish. At that time were we severely oversold and I called for a “2-14 day rally before heading back downward.”

I expected that to provide a nice window of opportunity to get fully positioned before the next big move downwards. My strategy was to sell spot ETH & BTC, scale out of alts and back into BTC and also open a leveraged short.

I still have a little spot BTC to sell and some alts left that I would love to get out of (at breakeven) but overall I am very happy with my position. I am going to wait for further confirmation before selling the rest of my spot (max 15% of total roll). To execute that order I want to see a lower high below $7,500 or a breakdown of $7,100.

We are currently retesting the triangle that dates back to 2/6 and are getting a few reversal candles. Starting with what can be considered an inverted hammer, a spinning top and a doji. From here I am expecting a bounce to $7,450 and then a breakdown of $7,100. If not in a position there should still be time over the next 6-24 hours to set up a bearish trade.

Until next time trade happily and compound heavily!
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Trade active:
Stop loss has been moved to break even
Comment:

Looking at the BTCUSDSHORTS chart on Bitfinex. The 4 hour looks like it fully recovered from going parabolic in early April. 50 & 200 period MA's have crossed and I expect a move to 27,500 before this selloff loses momentum.

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