After Bitcoins sharp fall we can see that bitcoin developed a great bounce from the lows.
It's currently trending within a channel and by the looks of it it's getting ready for a breakdown!
Within the channel we can see the control price (yellow line). In an uptrend we like to see price trading above the control price showing us we are in a strong uptrend. Right now BTC is being rejected from this line multiple times staying below control price indicating weakness. Right now BTC did not lost any important support so far in the smaller timeframes (1HR-4HR) as long as BTC does not lose local support I have reason to believe BTC is setting up for one more push higher finally being rejected by the Major Weekly resistance between the 7.4k-7.6k range. This would mean BTC will reject from control price or not even get close to it indicating more weakness. Combine the weakness with Major Weekly Resistance at 7.4k-7.6k ranges... I can smell supply destroying demand already!
Potential Targets for this move would consist out of 3 targets as shown on the chart.
Personally I would take 40% at TP1, 30% at TP2, 20% at TP3 and leave the last 10% open.
This is not financial advice, just opinions from a guy on the internet watching the markets!
Telegram: t.me/JuicyReks
Twitter: JuicyReks
It's currently trending within a channel and by the looks of it it's getting ready for a breakdown!
Within the channel we can see the control price (yellow line). In an uptrend we like to see price trading above the control price showing us we are in a strong uptrend. Right now BTC is being rejected from this line multiple times staying below control price indicating weakness. Right now BTC did not lost any important support so far in the smaller timeframes (1HR-4HR) as long as BTC does not lose local support I have reason to believe BTC is setting up for one more push higher finally being rejected by the Major Weekly resistance between the 7.4k-7.6k range. This would mean BTC will reject from control price or not even get close to it indicating more weakness. Combine the weakness with Major Weekly Resistance at 7.4k-7.6k ranges... I can smell supply destroying demand already!
Potential Targets for this move would consist out of 3 targets as shown on the chart.
Personally I would take 40% at TP1, 30% at TP2, 20% at TP3 and leave the last 10% open.
This is not financial advice, just opinions from a guy on the internet watching the markets!
Telegram: t.me/JuicyReks
Twitter: JuicyReks
Comment:
Weakness is found, ill be taking shorts at 7.4ish range
The Price action of the last couple of days is looking good, so far BTC did not break any significant support and is holding trend nicely. Also the liquidity BTC has created above 6.9k is very big, big enough to potentially push straight through the 7.4ish resistance. I will be watching the prica action closely if BTC reaches the 7.4kish zone. If no weakness in trend is shown ill NOT short it as liquidity has become extremely juicy for market makers to push straight through this level. The 7.4ish level obviously remains a level to take significant profit for longs.
In short: at 7.4k: Longs take significant profit, shorts watch out as BTC is creating a scenario where it could potentially have a very big pop to the upside. Only short the retest if trend is losing 4hr levels. If you still want to short it, short with a tight stoploss.