Bitcoin - Still consolidating before the next move. (Up or down?

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Just a quick thought on looking at the graph.

Due to the massive number of shorts closing, I think that the way I would approach this as a whale is to send a quick wick down to the previous resistance and below the 20MA to capture liquidity for a long breakout position.

Longs are getting high up there as well.

This would fake out a lot of the market that are decidedly bullish as well as cause the shorts to open back up for a short squeeze to the upside.

If we get a nice bounce, I could see us breaking out to the upside at the previous resistance as well as the 161.8% extension.

I'm in an entry for a spot long at a lower position and haven't found a good position to short as a hedge, but I wanted to get this out for anybody looking to grab a long position.

We are still waiting to determine if we are in the descending triangle formation or the adam and eve reversal formation.

The macro trend is still very bearish with very little new capital coming in, but the short term trend is looking like it wants to break to the upside, which is why I'm in a long position.

As said before, I'm in a long position from lower down, so my trade is 100% risk free as my stop is in a profit and I would wait to find a better shorting opportunity for a better set-up.

We may not get the wick to the downside, but that's where I see the most liquidity is coming from and it's always a high probable trade to buy on the first test of a resistance/support flip.

Happy Trading and let me know what you guys think below!
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you are the real OG my man
+1 Reply
We are split down the middle of where we could go so this helps for sure. I like how you pointed out the stop hunt for the long trades before a move back up. That's what we're looking for too. Currently, in a short but have a buy stop set at our blue trailing stop for the shot just in case. Thanks for the update Jacob! I LOVE CRYPTO :)
Long/Short Ration - 60%/40%. Your setup might work if you see maaaasive shorting on finex
I'm looking at it pretty much the same way. BTCUSD H4 Correction up. Checkout the idea detail's and all the update's for the complete picture.
Pretty reasonable approach. To be honest I thought of exactly the same. Bit of concerned as my long stops might fall victim to this roundhouse-kick-wick - and mine are not in profit yet...
jacobcanfield BuckarooBanzaii
@BuckarooBanzaii, Yeah, longs are just getting a touch high on the leverage side.