Just judging by previous behaviour at weekly (I'll post a screenshot in the comments) and looking at candlestick I think another leg down it's to be expected. Check this website for the theory: https://tradingbud.com/en/strategy/lesson/the-secret-of-the-double-doji
If you don't want to just read this:
if price goes below the lower dashed line you can start a short sell in the area indicated from the arrow point. By book you should set the upper dashed line as "stop loss", in this case it'd be around -30% loss but if you can adjust it according with the risk you're willing to take. Just pay attention not to set a stop loss which can trigger too easily.
I'd say you could make the opposite, if price breaks through the upper dashed line you can long there but I don't think it'll happen.
If I'm right I hope this will be the last dip but I thik that for this to be over BTC need a strong shake out, maybe 30k. If we go ther eand you have fiat accumulate!
Good luck
If you don't want to just read this:
if price goes below the lower dashed line you can start a short sell in the area indicated from the arrow point. By book you should set the upper dashed line as "stop loss", in this case it'd be around -30% loss but if you can adjust it according with the risk you're willing to take. Just pay attention not to set a stop loss which can trigger too easily.
I'd say you could make the opposite, if price breaks through the upper dashed line you can long there but I don't think it'll happen.
If I'm right I hope this will be the last dip but I thik that for this to be over BTC need a strong shake out, maybe 30k. If we go ther eand you have fiat accumulate!
Good luck
Comment:
last time something similar happened was few weeks ago and BTC went further down, I've checked also OPEN and CLOSE prices to assess this
Comment:
watch this closely because my scenario it's materializing!
Comment:
closing a 4h candle over the S/R just pierced would put my shorting scenario at risk
a daily candle closed over it would invalidate totally:
Trade closed: target reached:
41,2K is officially a support now as it's not the first time it holds the price making a sudden bounce back happen (check 11th jan at 4h timeframe). Descending trendline is broken but if you shorted at my signal you should have made some some money.
if daily closes like this I'd expect a reversal unless 42,5K will work as resistance:
if daily closes like this I'd expect a reversal unless 42,5K will work as resistance:
Comment:
if BTC closes like that this daily candle there might be another drop downward, hence another short opportunity. Follow me for updates.