Bitcoin : Christmas Dead Cat Bounce over ? What's next ?

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Hello traders.

Going to open a short position around this 4170 area at the next 4hr red candle for several reasons :
- We are around a 0.786 Fib Retracement from the previous 4.4k top and 3.1 bottom which is a key level for reversal.
- We are making a nasty bearish divergence on RSI , MACD and Stoch , they have proven their worth during this bear market.
- It looks like we might be forming a falling wedge , which is a bearish pattern .
- There is always a story of power in a trend which is most of the time defined by volume . As you can see, the volume on this last pump is really not significant compared to the overall volume of the move. It was a push that was showing that the current trend might be weakening, so we want to participate in the pullback. Looking to find 3541 as first target being the 0.618 Fib retracement of this upward move. Risk Reward ratio is 3, pretty safe.

What's next for BTC ?

From my experience, bottoms, real bottoms, never flatten out and then spring like the action we have seen this past week. Actual bottoms are violent formation with huge wicks in the candles, enormous % variation and very brutal action. I don't define the 3.1 low as bottom, therefore I think we will see lower levels in the beginning of Q1 or later this year. I don't want to hurt feelings of the newly found bulls on this platform but I think this is only a dead cat bounce that has had a violent spring fueled by FOMO and broken dreams. Now if this is a spring, we need to see if this was the end of the action or if there is more. Basically, the intensity and volume of the coming pullback should give us clues to whats next. If BTC manages to stand it's ground at the 0.618 Fib and look for higher prices, we might be able to make a medium term higher high before going to find the real bottom. If BTC fails to hold the 2 levels that are on the chart, things will probably turn pretty ugly.

Stay Open-Minded and Trade Safe.
Wishing you all a Merry Christmas and beautiful end of the year celebrations !
CR .
Trade active: Going in, trade setup is confirmed.
Merry Christmas TV People. Trade safe.
Trade active: Move stops at entry and enjoy the ride :)
Trade active: I closed half on my position on 50% ROE at 7x leverage. Letting the rest run with stops at entry. Playing a conservative move here, as I honestly don't know if the current 4hr price action is a pullback to go find new lows or if we have found support at the 0.5 Fib retracement. We have also bounced on 40 RSI on 4hr which could be associated with the bottom of a Bullish Range according to Cardwell's RSI Range Theory. As it's a coin flip, I secure 50% of profit and I flip the coin for the remaining part. Playing safe.

Please, if you enjoy my work, I would appreciate if you could hit the follow button on my profile. You will also find a link to 2 Telegram Groups there where I am a managing partner. Trade safe guys ! CR.

Trade closed manually: Soooo close to the target ! Next time. Having closed 50% of the position early anyways, I'm very satisfied with overall profit over 58%. Let's focus on this potential IHS!
Trade safe internet people

good decision =)
+1 Reply
good call.
+1 Reply
Its_Gui wolfgang1969
@wolfgang1969, Thanks sir !! Follow for more.
Excellent call ..... pity I only saw it now though !!
+1 Reply
Its_Gui ismikle
@ismikle, Follow me for instant notifications about my next calls, my good sir.
Nice call. This TA convinced me to take a short position last night. Wake up to some nice profit the following morning :)
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@vaderx, Thank you sir. Happy profits. Trade safe !
Went for a short position but double-shorted with this chart. Well play good sir!!
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Its_Gui CryptoMeth69
@CryptoMeth69, Thank you, citizen of internet. I wish you good luck and great fortune !!
+1 Reply
an inverse head and shoulders and another bull run!
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