Right now we have an interesting close on the daily
We got a bearish engulfing candle with 3 consecutive wicks showing sellers coming in.
Couple of reasons why we now need to wait.
The short sellers are getting paid on Bitmex and the longs are losing money after this big impulsive move. Which to me shows that there are too many people long and the market makers want to squeeze them as much as possible.
Now the big players will be patient and push the market around to get as much liquidity from the small fish again in order to gain some more BTCs.
Expect a pullback here lower.
On the pullback we could have a potential bull flag on the daily chart forming with the buying zone in the 61.8 fibonacci region which coincides with recent price action.
But we will wait for good confirmation in market structure and look for volume coming in also. An easy way to wait is simply wait for the 4hr middle band to pullback and then turn up again for the buy.
Also the FOMC meeting on WEDNESDAY will play a big part in the direction bias for BTC. keep an eye on the SP500 for volatility and some hints as to what is going on in the markets.
Good luck
muchos gracias.
We got a bearish engulfing candle with 3 consecutive wicks showing sellers coming in.
Couple of reasons why we now need to wait.
The short sellers are getting paid on Bitmex and the longs are losing money after this big impulsive move. Which to me shows that there are too many people long and the market makers want to squeeze them as much as possible.
Now the big players will be patient and push the market around to get as much liquidity from the small fish again in order to gain some more BTCs.
Expect a pullback here lower.
On the pullback we could have a potential bull flag on the daily chart forming with the buying zone in the 61.8 fibonacci region which coincides with recent price action.
But we will wait for good confirmation in market structure and look for volume coming in also. An easy way to wait is simply wait for the 4hr middle band to pullback and then turn up again for the buy.
Also the FOMC meeting on WEDNESDAY will play a big part in the direction bias for BTC. keep an eye on the SP500 for volatility and some hints as to what is going on in the markets.
Good luck
muchos gracias.