Are we done correcting? In my humble opinion, we are close. Let me share with you my thoughts on this.
Key Points:
I am planning a trade from current price to the top of the range at 12k. I plan on taking 4 profits at 10.6 - 11k - 11.4k - 11.9k. As always any trade can be a loser so risk management is imperative. I'm only risking 1% on this one.
Let's see what happens.
Key Points:
- Testing Weekly 20ma which is a historic support for bitcoin in past bull markets.
- Tested VAH of previous range for support and has held so far.
- after 10.5k was established as range low price pumped to top of range at 12k followed by a retracement to the 618 fib of the established range. Price pumped to 12.5k and retraced to the 618 fib of the whole range at 11.1k - 11.25k but closed above $11,263.
- Priced pumped to VAH of range which was also the 618 fib retracement of the move from 12.5k - 11.1k.
- Based on a fib based trend extension measurement price retraced to the 1.618 which is a textbook zone for shorts to close, and longs to open.
- Can price drop down below current support? Absolutely, this is crypto and anything is possible and there's a cme gap at 9.5k, and gaps statistically do fill. I try to wait for trades with the best odds, but at the end of the day I know anything can happen, no matter what the chart says. Psychologically many traders are bearish right now. Maybe price rests VAL of previous range forms a lower high, and continues down. Nothing would surprise us at this point.
I am planning a trade from current price to the top of the range at 12k. I plan on taking 4 profits at 10.6 - 11k - 11.4k - 11.9k. As always any trade can be a loser so risk management is imperative. I'm only risking 1% on this one.
Let's see what happens.
Comment:
1.272 of wave was acting as resistance. Price broke above, now let's see if 1.272 holds as support. If it does, we have confirmation of trend change.