Reasoning: 4th touch on pink support trendline, Massive ltf capitulation sell volume, Very large open interest @ $50,000 strike price for Jan 7th options expiry, Imbalance of areas to be retested
Recommendation: Long until at least $49,400
Trade closed manually
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Position closed at $46,400. Price action remains weak and I'm seeing some concerning rejections on the low timeframes. Flipped into a short instead.. have a feeling we could be on the verge of a massive dump.
Trade active
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Longed support again at 45.7k. I'm only playing this for a small bounce. I think this will be the last move up before a major crash. If support gets broken we are going down hard. 37k minimum. Possibly 35k or 33k.
Comment
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We've reached 40k. Massive support. Seeing massive accumulation and we might bounce soon but, I still think we will test 38k before we are fully ready, or 35k as a worst case scenario.
Reasonable idea, could see BTC bouncing off resistance again here, even though my overall bias is short 👍
ClearOpenDoor
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@HayeTrading, I am in agreement, currently reading a book about volume and it is describing supply tests during distribution perfectly with what is happening now. I will attempt a short upon a break of the supply zone or around 47.9k.
HayeTrading
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@ClearOpenDoor, Which book is that? Would you recommend? Always on the lookout for new books
ClearOpenDoor
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@HayeTrading, It's called A Complete Guide to Volume Analysis by Anna Coulling
It has some good info, although a lot of it might feel like review from other sources.
Tonpanzee
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Nice to see you back on TV, and I'm in my 45900 long as well. Hoping to ride it to 48K at least for resistance 1 and 49.5K for 2
ClearOpenDoor
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@Tonpanzee, I would take profits before 48 if you are still in a long position. I do not see us getting up to the .618 retracement. These are all supply tests of distribution. Once buyers are exhausted we begin the next markdown phase.
Tonpanzee
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@ClearOpenDoor, thank you very much for that tip. Appreciate it