DMG_Intelligence
Short

BTC is a showing us something - You need to check this chart

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
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Bitcoin is showing some interesting things. Each time we had a impulsive move upward, take a look at where price stopped (before continuation down). Yes exactly at the Golden Pocket (between the 0.618 and 0.65) Fibonacci.

Is that a coincidence? I don't think so as this zone is very often acting as support or resistance depending on the trend direction and TF.

Bitcoin price is exactly at the golden now!

Will this time be different than the past 2 rejections? I don't think so as we are still in a downtrend (big picture) without higher highs + where can see some bearish divergence in the 4H and a descending volume .

2 options now:

1) Aggressive: Start to build a position with a SL 2% above the previous wick and add more when the price shows more bearish signs.
2) Conservative: Wait for a nice red daily candle to start building your position.

Please encourage me by commenting below if you agree or disagree with my analysis and I will continue posting every day!
Thank you,

Comments

nice chart there...
similar to my idea. lets go shorttt
+1 Reply
NonNon NonNon
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@NonNon, Thanks, I think shorting now doesn't give you a good risk reward, in stead O would be looking for longs as you can see a bullish divergence starting to form on the 4H.
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NonNon DMG_Intelligence
@DMG_Intelligence, Thanks for the comment, my idea is to short at 9180 resistance near 0.25 fib projection and the target would be at 1 (around 5300). For me Btc is still in a downtrend since end of 2017 and there's level at much lower price that haven't been tested. But whose know, BTC might just go to the moon. cheers
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NonNon NonNon
@DMG_Intelligence to correct myself,its 9165 area of resistance
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Im short from 9145 on mex. Been playing the golden zone retrace from both sides. Last long from 6850 was on the 65 to the tick as well. Do you think this dump goes below base of the rising wedge like the last 2 or 3 such formations? or just a healthy internal retrace?
+1 Reply
@BullWick, Very well done man! Nice to see people using the same strategy!

For me the trend is still bearish until we make a higher high.

1) So I would be closing half 30% of my short at the new 0.618 fib ($7472) which is also next to the weekly level ($7512.5) and check price action there! If we hold the golden pocket and price start to show strength with volume increasing, i would close all my position and take a long.

2) If price start moving upward again to the actual Golden Pocket ($9000) and consolidate for more than 24h, I will be closing my short and start looking for a long.

I don't like to predict that much, I prefer to play what the market is giving at every situation! I think my approach to trading is very simple: just looking for high probability trades.
+1 Reply
BullWick DMG_Intelligence
@DMG_Intelligence, You got balls. I ladder in and out of positions so I will be taking some off at fibs prior to golden zone. 20% at 38. 30% at 50, 30%618 and watch that zone for flip like you.
Obviously I can reshort retraces at those levels but the targets are there for now.
Happy Trading and thanks for your post...always a little less stress when you see others reinforce your position
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@BullWick, Yes I agree, that's a good strategy too to manage this trade! Profit is Profit at the end ;) I am really happy to share these posts with you guys! Thank you @BullWick for taking the time to comment. Good luck!
+1 Reply
Nice analysis I have seen a few folks drawing their S+R lines much differently and maybe wrong but your analysis is the same as mine.
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