dRends35

COIN - Time To Short This Great Crypto Stock

Short
dRends35 Updated   
BATS:COIN   Coinbase Global
I've been waiting a while for this one and now it is time to make a first short entry.

The elephant in the living room is the big bad bearish divergence on the week chart.

Apparently not many can see these divergences that stick out like a sore thumb but they have been very useful in knowing when to take profit.

The coloured bands are of Golden Window Fibonacci extensions using the 3 trend based pivots at the start of the 2023 trend and also a reverse 2 point extension taking the accumulative summer '22 high and the bottom.

Notice that the top is hitting exactly within these coloured bands.

And so if that is a top then it is perfectly balanced in terms of ratio.

I only took profit there as I suggested I might in the previous thread linked below.

I didn't go short.

But now it has printed a choppy ascending channel that can be a sign of upside weakness and the potential distribution shifting from bullish to bearish.


Notice also that it may have topped within the retracement Golden Window; peaking at the 0.786 overshoot ratio.

If the retracement has topped then that is more perfecto ratio.

This whole bull trend has been the process of an ascending wedge with the top being that of a blow off phase.

Due to this I think this should at some point capitulate through the lower trendline.

In the end I think this will capitulate down to Accumulation support @ $116 and may even get back to the retracement Golden Window with the 0.618 @ $72.

This may yet wobble around and could even print a slightly higher high, but it looks cooked I think and worth a short.

If this plays out then buy-late-HODL-dreamers are going to get smashed.

Client call:


Not advice
Trade active:
Down 7% since my entry yesterday.

It has rejected twice from the 0.786 and this channel is looking weak.

I think this ascending channel may also be our favourite Wyckoff Inverted Creek; the cause building event of a Distribution that leads to Mark Down; the downtrend 🧐.

Comment:
Another week candle closes with an upper wick (rejecting from the 0.786 retracement).

Thats a bearish clue I think.

Comment:
Gap down and has collapsed from the ascending channel.

Going well so far.

Comment:
Another gap down and COIN is currently 17% down from my entry 👍.
Comment:
1 hour crypto video:
Trade closed manually:
Decided to take profit here.

I'm now currently trading the possibility that Bitcoin may turn bullish here.

And so I dont want to be short anything with that consideration.

If a nice dip buy comes then i'm interested.

COIN chart doesn't look great for the bullish case in this area.

We may see a slump against Bitcoin.


Its A Great Time For Crypto Lovers to Join The Post Bitcoin Halving Bonanza 🥳.

Many Trade Ideas Every Day 📈

Regular videos ✨.

Telegram Group: $50 per month 👍🏻.

Contact: t.me/dRends35
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.