Short-term bear, long-term bull!
While everyone can agree the pump will be massive if it completes, I'm here to offer a different scenario.
Bitcoin just printed a on the daily.
Short body, low head, huge shadow.
Normally this would mean we are headed lower.
The other day I was watching a symmetrical triangle, and was able to catch the $300 pump Bitcoin created for a higher high.
Since then, I have noticed that the same resistance the symmetrical triangle was in is the resistance we are facing now.
The 2h just printed hidden divergence.
The 4h is showing regular divergence.
This is a great short opportunity.
Conservative target is the .618 at $3,551.
R/R is 3.16 with a stop just above the 50MA on the 4h.
Aggressive target lies around $3,460.
That is the target of the we are printing. R/R is 4.5.
If we hold support above $3,400 chances become fairly high we will complete the inverse HS. Target for that is $5,200 or so.
Down we go ;)
This support test is now the 3rd since we began said previous swing.
How the market reacts here will likely define where we're going.
The .786 lies at around $3,715. It is arguably the last line of defense the bulls have to push for a new higher high, or the market will react.
A lot of people are believing this could be a double bottom, but I find it hard to believe for a number of reasons.
Bearish divergences showing.
Strong rejection on an attempt to *yet again* break the triangle.
We just wicked to within $10 of the .786.
If we go back down again to find support, it will likely be there. If we hit the .786 and are still unable to hold, we will test our low at $3,670.
If we start dumping past $3,700 with momentum, that will not hold.
You could take partial profits here, depending on your risk management.
I would say no more than 33%, then move your stop to entry.
I still think we have further to go, but this is a great time to lower your short into some pretty decent profit.
Position on my end would of been closed just above the .618 at around $3,580.
PS- I don't trust this pump.