Ok guys, let's get right to it here.
In my last idea, I thought that price would try to double top at 8800, and frankly we were getting there till the bottom completely fell out. But if you we're seeing the same volume zones that I'm laying out in this idea, you would have been crazy not to have longed it from 8300. It's fine, part of trading is having stop losses in place because hey - Bitcoin... That's why!
But the good news is is that all this sideways action is starting to paint a picture of well defined trade zones and price pivot points.
You can usually fairly easily spot these zones because of volume, the VPVR tool is practically perfect for defining these areas.
So we currently have the top green zone, the middle orange pivot zone, and the bottom red zone.
Any time price breaks through from the green to the red or vice versa, you would trade the zone its in and use the pivot point zone (orange) to set your stop loss price
For example. We are currently on the bottom end of the orange pivot zone descending clearly into the red zone. This would be a good place for a short with a stop loss slightly above 8300 for good measure. Make sure you understand I fully expect them to keep messing with the price inside of the orange pivot zone. I'm not expecting a death defying fall from right here, it would be too obvious.
So do expect the likelihood of price jousting around 8100-8300 for a bit before it fully decides to do whatever it's going to do. It may even decide to mess with us and shoot up to 8400 (Near the top red trend line) before it dumps again. Would not surprise me. So if you want, open a partial SHORT here, if the price goes up to 8300-8400, ADD to your short from there.
Your take profit should be conservatively right around 7800-7900. I'd place it more towards 7900 because if you see the daily Bollinger band, the bottom of the band is right around 7920 currently, so price may decide to spring a surprise and not even make it to 7800 as some are expecting it to. Ideally you might do something like TP at bottom of daily Bollinger (let's be conservative and say 7940 to make sure it hits the TP), wait for the bounce back up to pivot zone and re-short. A long is too risky in this zone, because price may decide to plummet lower and then you're forced to stop out. If anything, short in the red zone, long in the green.
Zulu Kilo indicator showing we're in a short, I'm not on the 4hr chart (just to show VPVR volume a bit more defined) - but all big three indicators agreeing with being in a short position on the 4hr.
If I we're to put my finger in the air here and guess, I'd say we may make a trip back to 8300-8400 zone since we are still technically super close to pivot... It may try to break into the green zone a bit again, but that red resistive trend line is packing too much punch, we dive to bottom of Bollinger on daily in the red zone, maybe another bounce back up to orange pivot zone before the bigger fall is to come.
The reason I'm expecting something like that to play out is because it did it right at 10k near this same exact resistance line, and if you remember back then, price action was FICKLE.
LONGER TERM PICTURE IS STILL RIGHT AROUND 7K, POSSIBLY LOWER ***BEFORE*** ANY SHOT AT 10K CAN BE HAD... PERIOD... Been saying that for weeks now, and sticking to it. Don't let these relatively small buy-ups make you think the correction is done. It's not. A "Unicorn" moon candle is NOT how this correction will notify you it's ended. It will be long-ish, messy, and will make weak traders insane. Most will give up on Bitcoin and throw it to the dogs. Most of you reading this will have lost lots of time, effort and money on trying to trade a really tricky correction.
THAT ladies and gentlemen is how a correction cycle reverses. When you no longer see "moon boys" calling the next 1hr candle to go up to 25k, THAT is when you know it's safe to buy and HODL.
Market cycle theory 101
In my last idea, I thought that price would try to double top at 8800, and frankly we were getting there till the bottom completely fell out. But if you we're seeing the same volume zones that I'm laying out in this idea, you would have been crazy not to have longed it from 8300. It's fine, part of trading is having stop losses in place because hey - Bitcoin... That's why!
But the good news is is that all this sideways action is starting to paint a picture of well defined trade zones and price pivot points.
You can usually fairly easily spot these zones because of volume, the VPVR tool is practically perfect for defining these areas.
So we currently have the top green zone, the middle orange pivot zone, and the bottom red zone.
Any time price breaks through from the green to the red or vice versa, you would trade the zone its in and use the pivot point zone (orange) to set your stop loss price
For example. We are currently on the bottom end of the orange pivot zone descending clearly into the red zone. This would be a good place for a short with a stop loss slightly above 8300 for good measure. Make sure you understand I fully expect them to keep messing with the price inside of the orange pivot zone. I'm not expecting a death defying fall from right here, it would be too obvious.
So do expect the likelihood of price jousting around 8100-8300 for a bit before it fully decides to do whatever it's going to do. It may even decide to mess with us and shoot up to 8400 (Near the top red trend line) before it dumps again. Would not surprise me. So if you want, open a partial SHORT here, if the price goes up to 8300-8400, ADD to your short from there.
Your take profit should be conservatively right around 7800-7900. I'd place it more towards 7900 because if you see the daily Bollinger band, the bottom of the band is right around 7920 currently, so price may decide to spring a surprise and not even make it to 7800 as some are expecting it to. Ideally you might do something like TP at bottom of daily Bollinger (let's be conservative and say 7940 to make sure it hits the TP), wait for the bounce back up to pivot zone and re-short. A long is too risky in this zone, because price may decide to plummet lower and then you're forced to stop out. If anything, short in the red zone, long in the green.
Zulu Kilo indicator showing we're in a short, I'm not on the 4hr chart (just to show VPVR volume a bit more defined) - but all big three indicators agreeing with being in a short position on the 4hr.
If I we're to put my finger in the air here and guess, I'd say we may make a trip back to 8300-8400 zone since we are still technically super close to pivot... It may try to break into the green zone a bit again, but that red resistive trend line is packing too much punch, we dive to bottom of Bollinger on daily in the red zone, maybe another bounce back up to orange pivot zone before the bigger fall is to come.
The reason I'm expecting something like that to play out is because it did it right at 10k near this same exact resistance line, and if you remember back then, price action was FICKLE.
LONGER TERM PICTURE IS STILL RIGHT AROUND 7K, POSSIBLY LOWER ***BEFORE*** ANY SHOT AT 10K CAN BE HAD... PERIOD... Been saying that for weeks now, and sticking to it. Don't let these relatively small buy-ups make you think the correction is done. It's not. A "Unicorn" moon candle is NOT how this correction will notify you it's ended. It will be long-ish, messy, and will make weak traders insane. Most will give up on Bitcoin and throw it to the dogs. Most of you reading this will have lost lots of time, effort and money on trying to trade a really tricky correction.
THAT ladies and gentlemen is how a correction cycle reverses. When you no longer see "moon boys" calling the next 1hr candle to go up to 25k, THAT is when you know it's safe to buy and HODL.
Market cycle theory 101