Double top at 8.8k-8.9k emerging on BTC. Eyeing futures gaps...
On my previous analysis I showed the potential of buying coming on, and initially thought it would be very limited in scope... Possibly only to about 8500 or so. I didn't see much CME futures gaping further up; until I started scanning them at lower time frames (they're difficult to catch if you're looking at them on higher time frames unless they are large blocks bought).
8300 has been holding. Holding almost too well. Especially considering that weekend buying is usually pretty lackluster.
Today, a buy signal came up on my 4hr algo... And the truth is, at this point, the algorithm I encoded has been really on, pretty accurate and reliable. The trick is that those buy/sell signals will ONLY be accurate when used in conjunction with other indicators, mainly MACD/RSI/Stoch. When ALL 3 indicators align, I will be long to scalp the profit.
I'll be honest, as far as my own TA goes, I would have guessed that the rejection at 8800 was firm and decisive. Never would have even thought about another round of buying here.
What I keep forgetting in my own TA is greed. Good old fashioned greed.
Let's talk about the obvious, and I've hit this point home before. CME futures gaps ARE a thing. They DO manipulate price structure. Where there is lots of money to be made by the establishment that has procured a niche in the Bitcoin market, always favor the HOUSE when in doubt... Especially when your algorithms are indicating as much.
DAILY Stoch/RSI and MACD are STILL at a buy, which brings me to the conclusion that the market is pointing to a double top before going lower. I will keep the long open to at least 8800 and take profit, UNLESS my indicators are telling me otherwise.
Keep in mind that there may be consolidation in between here and 8800-8900. When STOCH/RSI and MACD along with my own algorithm tell me to start the short, I will be ADDING to my already established short positions to average PNL higher when it happens.
Dont confuse buying here to kill off futures gaps for the correction being over. I am STILL in the mindset in the long picture that we will eventually see lower prices, regardless of the buying here or how bullish people get. Also keep in mind that we have a ton of gaps below us as well. But I am also not against turning CME greed into small-fish profit. Remember that the day traders like you and me make profit when we learn where the big fish feed. None of you reading this are "big fish", I don't care if you're holding 1000 BTC, you're small fish compared to the establishment, and they're the ones that dictate the prices.
Look for price to hold between 8200-8300 until the real buying starts... May not be till tomorrow or Monday.
8300 has been holding. Holding almost too well. Especially considering that weekend buying is usually pretty lackluster.
Today, a buy signal came up on my 4hr algo... And the truth is, at this point, the algorithm I encoded has been really on, pretty accurate and reliable. The trick is that those buy/sell signals will ONLY be accurate when used in conjunction with other indicators, mainly MACD/RSI/Stoch. When ALL 3 indicators align, I will be long to scalp the profit.
I'll be honest, as far as my own TA goes, I would have guessed that the rejection at 8800 was firm and decisive. Never would have even thought about another round of buying here.
What I keep forgetting in my own TA is greed. Good old fashioned greed.
Let's talk about the obvious, and I've hit this point home before. CME futures gaps ARE a thing. They DO manipulate price structure. Where there is lots of money to be made by the establishment that has procured a niche in the Bitcoin market, always favor the HOUSE when in doubt... Especially when your algorithms are indicating as much.
DAILY Stoch/RSI and MACD are STILL at a buy, which brings me to the conclusion that the market is pointing to a double top before going lower. I will keep the long open to at least 8800 and take profit, UNLESS my indicators are telling me otherwise.
Keep in mind that there may be consolidation in between here and 8800-8900. When STOCH/RSI and MACD along with my own algorithm tell me to start the short, I will be ADDING to my already established short positions to average PNL higher when it happens.
Dont confuse buying here to kill off futures gaps for the correction being over. I am STILL in the mindset in the long picture that we will eventually see lower prices, regardless of the buying here or how bullish people get. Also keep in mind that we have a ton of gaps below us as well. But I am also not against turning CME greed into small-fish profit. Remember that the day traders like you and me make profit when we learn where the big fish feed. None of you reading this are "big fish", I don't care if you're holding 1000 BTC, you're small fish compared to the establishment, and they're the ones that dictate the prices.
Look for price to hold between 8200-8300 until the real buying starts... May not be till tomorrow or Monday.
Comment:
Comment:
Price is suggesting bounce down from 8400 currently and eyeing back down to bottom of BB right around 8200 or so. Don't be too surprised if we go a bit lower than 8200, but a good buy opportunity will present itself there again before we go much higher I believe.
Comment:
Ok guys, update. I'm thinking this is the push. All the indicators on 4hrs are lined up. You can buy here, though there is a chance we might still hit the bottom of BB, but if you're at a 5x -10x long max, you'll be safe here.
You can also just buy partial position here and wait to see if we do go lower.
You can also just buy partial position here and wait to see if we do go lower.