Bitcoin 4H Hidden Bullish DivergenceBitcoin looks like a really good R:R long opportunity to me. It's risky as the downtrend is strong but with tight stops it stands to be a potentially nice trade.
We currently have a 4h hidden bull divergence converging with 0.618 fibonacci retracement in an uptrend. This is one of the most common retracement levels to reverse on.
I plan to ladder in with stops around .618 level.
To play devils advocate; MA's crossed down so that's bearish and concering; ADX and DMI- are also fairly high showing a strong trend in the down direction. We may have some more legs to go down but I don't think too far. As Rothschild said "Buy when there's blood in the streets, even if the blood is your own."
This is a good time to stock up on alts imo -0.06% in the case that the uptrend continues and I believe we may see the start of an alt-coin season. They have been bloody for quite a while.
I think that 6800 will hold; its a retest of the inverse head and shoulders neckline that reversed the downtrend and started this upswing in the first place.
I will ladder in longs down to 6700ish and up to 7000 as we approach it on the way back up. Stops below or around 6700 area. If 0.618 breaks I expect we may see a violent move/capitulation down straight through to the next fib around .786 but I would place my stops tighter to the 0.618 to avoid that if possible.
Best of luck traders!
