Hi All,
As expected, the first support @ $7230.5 (the yellow trendline from my previous post) was not strong enough to hold the drop and start a new bull run.
The above chart is something that I updated on my Twitter yesterday, in which I envisaged a possible formation of a bear flag. Nothing much has changed since, Below is the link to the thread: twitter.com/TaiwanBe...s/978942213248901121
The used-to-be support @ $7230.5 is clearly a resistance. EMA20 is closing in that price level acting as another resistance. New FIBO set-up (setup 1) seems to be valid by looking at the price action between each Fib level. Plus, it looks like it needs time to consolidate. Hence, the reason I came up with the bear flag.
It is still too early to tell, but I just want to give you an update as it looks like the bear flag can break down at any time. But please keep in mind that it can certainly break the bear flag to the upside. However, I think it is less likely, especially when BTC is that close to test the major support at $6000.
If you look at all the 3x FIBO set-ups on my chart above, you can see $6000 is indeed a very strong support. FIBO setup 1 shows me 1.618 retrace @ 6043.6. Setup 2 shows me 1.618 retrace @ 6027.3. As well, setup 3 shows me 1 retrace @ 6000, which is also the low on the 6th Feb, and double bottom. These all indicate that there is major support at $6000. And if you notice the size of the current formation of bear flag, you can see that it also indicates a price target at around $6000.
So what I am going to do next is to place buy positions using around 30%-35% of my assets between the price range of $6000 - $6237.1. I have highlighted this price range in the chart as the "potential buy". I am not going to set a SL on this trade as I am quite confident that the price will go back up above this price level in the near future if, it does drop below $6000. Then, I will take my profits between $7103.8 & 7577.9. My focus will be around the $7300 mark. And the reason for taking the profits at that price range is because I can see there is quite some resistance there, and the fact that my ultimate target is still $4436 mid April.
Taiwan Bear
******************************************************************************************
Please note this post is provided for informational purpose only. It is not a financial advice to buy/sell.
Some tips for you:
- Set up an entry/exit strategy for every trade, with the ideal risk/reward ratio (2+)
- Understand that every trade carries a risk, and don’t expect you can make profits from every trade
- When you follow a trader on TV, you want to follow someone who looks at the big picture, not just counting EW. And that trader should identify a trend/pattern that you don’t see.
As expected, the first support @ $7230.5 (the yellow trendline from my previous post) was not strong enough to hold the drop and start a new bull run.
The above chart is something that I updated on my Twitter yesterday, in which I envisaged a possible formation of a bear flag. Nothing much has changed since, Below is the link to the thread: twitter.com/TaiwanBe...s/978942213248901121
The used-to-be support @ $7230.5 is clearly a resistance. EMA20 is closing in that price level acting as another resistance. New FIBO set-up (setup 1) seems to be valid by looking at the price action between each Fib level. Plus, it looks like it needs time to consolidate. Hence, the reason I came up with the bear flag.
It is still too early to tell, but I just want to give you an update as it looks like the bear flag can break down at any time. But please keep in mind that it can certainly break the bear flag to the upside. However, I think it is less likely, especially when BTC is that close to test the major support at $6000.
If you look at all the 3x FIBO set-ups on my chart above, you can see $6000 is indeed a very strong support. FIBO setup 1 shows me 1.618 retrace @ 6043.6. Setup 2 shows me 1.618 retrace @ 6027.3. As well, setup 3 shows me 1 retrace @ 6000, which is also the low on the 6th Feb, and double bottom. These all indicate that there is major support at $6000. And if you notice the size of the current formation of bear flag, you can see that it also indicates a price target at around $6000.
So what I am going to do next is to place buy positions using around 30%-35% of my assets between the price range of $6000 - $6237.1. I have highlighted this price range in the chart as the "potential buy". I am not going to set a SL on this trade as I am quite confident that the price will go back up above this price level in the near future if, it does drop below $6000. Then, I will take my profits between $7103.8 & 7577.9. My focus will be around the $7300 mark. And the reason for taking the profits at that price range is because I can see there is quite some resistance there, and the fact that my ultimate target is still $4436 mid April.
Taiwan Bear
******************************************************************************************
Please note this post is provided for informational purpose only. It is not a financial advice to buy/sell.
Some tips for you:
- Set up an entry/exit strategy for every trade, with the ideal risk/reward ratio (2+)
- Understand that every trade carries a risk, and don’t expect you can make profits from every trade
- When you follow a trader on TV, you want to follow someone who looks at the big picture, not just counting EW. And that trader should identify a trend/pattern that you don’t see.
Comment:
Instead of hitting the major support at 6k, BTC rebounced almost exactly at the 1.414 retrace @ $6424.4. This could mean that a re-test of EMA50 & trend line (connects the low on 15/07/17, 16/09/17 & 06/02/18) is likely to happen. And there might be 2 bear flags between now and the 12th April in which I have circled in yellow & red in the chart below.
My predictions - "$4436 between 12-14 April" is still in play.
My predictions - "$4436 between 12-14 April" is still in play.
Comment:
BTC has broken the black trendine, EMA20, as well as the bull flag to the upside, without much volume. And BTC is now testing them as support. MACD is showing bullishness and RSI has lots of room to go up. I think BTC is now in corrective wave and should retrace back up to about 7.6-8.2k.
I believe many people who have short positions have their SL set at around 7250 - 7300, meaning if BTC hits that price level many of the SL will be activated and the price can surge up to 7.6k in no time.
If you currently have no position in BTC, I believe it is better to wait for confirmation.
I believe many people who have short positions have their SL set at around 7250 - 7300, meaning if BTC hits that price level many of the SL will be activated and the price can surge up to 7.6k in no time.
If you currently have no position in BTC, I believe it is better to wait for confirmation.
Comment:
Hi all,
Please don't trade until further confirmation.
There might be an inverse h&s as there is some support around $6700. But nothing is clear at the moment.
Please don't trade until further confirmation.
There might be an inverse h&s as there is some support around $6700. But nothing is clear at the moment.
And just to show you ETH as an example as to why I think 30%+ profits is possible: