We sometimes get big counter-trend washout dump moves on the weekend that get bought back up during the week. These moves are bewildering at first, buy if you have been trading bitcoin for a while you will start to see these moves as an opportunity. Currently bitcoin is closer to breaking through the $12K resistance and out of the current consolidation than it is to breaking down. This idea is more of a "if this does happen here is how I am prepared" strategy. The 12H is a great timeframe to trade with bitcoin . It just cuts out the noise. The 12H 55ema and 12H 89ema are speaking to me and telling that if there isn't a breakout today and there is a washout move on Saturday or Sunday, these emas are lining up with some good support levels. This idea is most likely invalidated if $12K is broken (confirmed with a 12H candle close), but if we look back at June 1rst there was a higher high that was dumped quite violently on June 2nd. That dump was on a Tuesday, so not exactly a weekend move but puts in perspective the possibilities. If there was a similar dump of about %16 from $12.6K, the next resistance level , that would send the wick down to $10.4k or so.
I prefer to catch scary wicks that are likely to atleast have enough of a bounce to exit the trade at a minor loss if it looks like its a real change of trend. I don't like buying "at support" because it becomes very difficult to manage risk with static stop losses and we humans need to sleep. Note that I don't put on more than 3x-4x leverage and try to scalp some away as soon as possible to minimize risk from the dump going deeper.
I don't think buy target 3 is in play anytime soon, but put it on there as it is an area I am looking at. $9150-$9300 would be next.
**Not financial or trading advice, just sharing what I am doing so I can continue to progress as a trader.**
I prefer to catch scary wicks that are likely to atleast have enough of a bounce to exit the trade at a minor loss if it looks like its a real change of trend. I don't like buying "at support" because it becomes very difficult to manage risk with static stop losses and we humans need to sleep. Note that I don't put on more than 3x-4x leverage and try to scalp some away as soon as possible to minimize risk from the dump going deeper.
I don't think buy target 3 is in play anytime soon, but put it on there as it is an area I am looking at. $9150-$9300 would be next.
**Not financial or trading advice, just sharing what I am doing so I can continue to progress as a trader.**
Comment:
Comment:
I see that there was a spike in the global funding rate on June 1. I don't think this was that significant, but just another data point.