SQ was rejected precisely at Gann level 267 and dropped towards Gann level 235, giving us a nice profit.
We can count 5 waves down (green count) and, if correct, may expect a retracement, especially if Bitcoin continues to climb.
An idea could be to reduce short exposure on Gann level 235 in case Bitcoin pushes higher and SQ correlates.
The 50-60% retracement area (blue box) is a zone where sellers could step back in.
Should price drop further from here we may look at the next Gann levels for potential supports:
- 220, also (a)=(c) equality
- 206
- 192/195, also 1.618 extension of wave (a)
The 30-day Implied Volatility has risen to 42, reflecting the strong expansion of movement that is unfolding. Rising yield helps traditional banks but fintechs may run into difficulties to re-finance themselves and therefore often rather correlate with other yield-sensitive tech stocks.
______________
www.constellations.trade
In my analyses I combine Elliott waves, Gann theory, and planetary aspects to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to use options premium decay for consistent income when markets may contract and range.
Open an account here if you'd like to support my work:
TastyTrade
America's best Options, Futures and Crypto broker
start.tastyworks.com/
Deribit
The world's most liquid Bitcoin options platform
www.deribit.com/reg-14912.6680
Binance
10% off trading fees with this link:
accounts.binanc....me/en/register?ref=LLBB97...
These abbreviations in the chart describe ideas that are provided as educational information and do not constitute financial advice:
STO = sell to open
BTC = buy to close
BTO = buy to open
STC = sell to close
TD = Theta Decay (for example a strangle or iron condor)
Disclaimer:
The views and ideas expressed in this analysis are that of the maker. They are provided as educational information and do not constitute financial or trading advice.
We can count 5 waves down (green count) and, if correct, may expect a retracement, especially if Bitcoin continues to climb.
An idea could be to reduce short exposure on Gann level 235 in case Bitcoin pushes higher and SQ correlates.
The 50-60% retracement area (blue box) is a zone where sellers could step back in.
Should price drop further from here we may look at the next Gann levels for potential supports:
- 220, also (a)=(c) equality
- 206
- 192/195, also 1.618 extension of wave (a)
The 30-day Implied Volatility has risen to 42, reflecting the strong expansion of movement that is unfolding. Rising yield helps traditional banks but fintechs may run into difficulties to re-finance themselves and therefore often rather correlate with other yield-sensitive tech stocks.
______________
www.constellations.trade
In my analyses I combine Elliott waves, Gann theory, and planetary aspects to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to use options premium decay for consistent income when markets may contract and range.
Open an account here if you'd like to support my work:
TastyTrade
America's best Options, Futures and Crypto broker
start.tastyworks.com/
Deribit
The world's most liquid Bitcoin options platform
www.deribit.com/reg-14912.6680
Binance
10% off trading fees with this link:
accounts.binanc....me/en/register?ref=LLBB97...
These abbreviations in the chart describe ideas that are provided as educational information and do not constitute financial advice:
STO = sell to open
BTC = buy to close
BTO = buy to open
STC = sell to close
TD = Theta Decay (for example a strangle or iron condor)
Disclaimer:
The views and ideas expressed in this analysis are that of the maker. They are provided as educational information and do not constitute financial or trading advice.