Yesterday I entered a small position at $8,500 and it didn’t take long for my stop loss at $8,249 to get triggered. That is my sixth losing trade in a row and now it is time for a break. It can be very difficult to think clearly when on the wrong side of the market for that long. A few days away from the charts to clear my head is exactly what I need.
The market is down ~11% over the last week and I have been buying most of the dips. Most bounces have not gone as far as expected and when they have I got squeezed out before reaching my target.
Stretches like this are a stark reminder of how hard trading actually is!
From here I am seeing two options that are most likely:
1. Find support at $8,200 | trend line (orange) and horizontal support 2. Continue pulling back to $7,150 - $7,250 | trend line (green dotted) and horizontal support
As long as we remain within the green dotted trend lines I will stay bullish. If we breakdown through $7,150 then I will expect us to selloff to the $5,000 range.
For now I am going to take at least two days off of trading and will likely take the weekend off after that.
I'm disgusted with Bitcoin myself. All that hysteria about breaking the downtrend line was a red herring. On the daily chart we've been below the 200 MA since March 14. I don't think we're going anywhere for quite some time.