Here we can see Bitcoin put in a pretty nasty divergence on the RSI and MACDH indicators as it made a higher high. These types of divergences are often followed by big moves. I actually sold all my Bitcoin once the daily confirmed this signal. We can also see a similar chart pattern on Ripple. All this is also within a rising wedge reversal pattern which could break to the downside
I was unable to take the short though as price had moved too far after giving the signal whilst I was sleeping. No worries I might take a short if price moves up a bit for a tighter stop loss.
The reason why I sold everything rather than held is because I trade for the main a highly leveraged acc and prices could retrace a lot here. Looking at the weekly charts Bitcoin is very overbought.
It's true to say that we have now entered a bull market so its probably safe for other investors to just hold, but it's also possible that bitcoin could retrace all the way down to first support at $10,520 and then maybe to the green support box underneath.
Even this may not hold though and prices could reach below the 200DMA on a wick candle perhaps , who knows! Anything can happen and we should always be prepared for it.
The great thing bout being out here is that I can take a short if I like with a tight stop loss at the daily high once the hourly moving averages look like crossing as well. Alternatively if we do take out the daily highs again then wow that would maybe negate all divergences and be a great place to jump back in long again. Thats why its good not to buy here but wait for the highs to be taken out or if the charts become very oversold at major support. Ill post again if that happens so leave a like a follow if you want a pro's take on things. Those types of reversals also normally move very fast and we would expect to see a move up to complete the prior bull flag to the $16,000 region.
I was unable to take the short though as price had moved too far after giving the signal whilst I was sleeping. No worries I might take a short if price moves up a bit for a tighter stop loss.
The reason why I sold everything rather than held is because I trade for the main a highly leveraged acc and prices could retrace a lot here. Looking at the weekly charts Bitcoin is very overbought.
It's true to say that we have now entered a bull market so its probably safe for other investors to just hold, but it's also possible that bitcoin could retrace all the way down to first support at $10,520 and then maybe to the green support box underneath.
Even this may not hold though and prices could reach below the 200DMA on a wick candle perhaps , who knows! Anything can happen and we should always be prepared for it.
The great thing bout being out here is that I can take a short if I like with a tight stop loss at the daily high once the hourly moving averages look like crossing as well. Alternatively if we do take out the daily highs again then wow that would maybe negate all divergences and be a great place to jump back in long again. Thats why its good not to buy here but wait for the highs to be taken out or if the charts become very oversold at major support. Ill post again if that happens so leave a like a follow if you want a pro's take on things. Those types of reversals also normally move very fast and we would expect to see a move up to complete the prior bull flag to the $16,000 region.
Trade active:
Price action is now good enough for me to take a short down to target $10,700. stop loss at $12,500
About me: I'm a retail day trader (trading since 1993). Most ideas here are for short time frames and become profitable quickly. I take profits fast as things change fast. 1-2-1 mentoring sessions available.
Telegram coming soon.
Telegram coming soon.