BTC Finally Breaks Down!
Unable to get a chart posted at time of break down but here we go.
Jumping off last chart, I discussed the box (still highlighted here) which was really just our range we bounced within. That being $6345 and $6493. Very easy for scalp traders to long on a break above or short on a break below. I personally do not short BTC so had no interest in the break down unless we started falling closer towards 6k to play an oversold bounce. If I were shorting, I would have played it safe and waited for the break below $6345 and entered a short there and at this point would set a break even stop or perhaps a stop slightly above $6345. But again, not shorting this market personally. So lets look more into details of what is happening.
So we broke down. If in a position, a tight stop was at $6380 (most recent low of the tight range it was bouncing within). Conservative stop at $6345 (low of the entire 2 weeks of this tight range) and as we see over and over in this market, a quick flush down as multiple stops trigger and people exit their positions from this tight range we'd been in for about 2 weeks.
Bottom was caught at $6211 so not a ton of damage done but thus far a pretty weak bounce off the low.
Also in place is the same EMAs I use which are still playing catchup to the price, the 12 and 26. Watching for those to serve as resistance or a bounce upwards towards our previous box ($6345-6493) to give a rejection from the bottom of that box at $6345. Often prior support acts as future resistance once that support fails.
So, its again, a game of patience. Nothing screams enter a bullish position here. I need the bulls to either: 1. Prove themselves with a break of some resistance point. 2. Establish a clear higher low and higher high pattern on 4hour or higher timeframe. 3. News catalyst possibly but even those seem to fizzle out quickly lately.
So bottom line is same as it's been for the past month or so. Market is boring, volatility not really there for easy profitable trades. $6000-6500 is really no mans land to me and if we see $6345 area act as resistance, perhaps this no mans land tightens up a bit for the range. But fortunately stocks have plenty of volatility and allow for profitable trades at this time when crypto is boring.
Jumping off last chart, I discussed the box (still highlighted here) which was really just our range we bounced within. That being $6345 and $6493. Very easy for scalp traders to long on a break above or short on a break below. I personally do not short BTC so had no interest in the break down unless we started falling closer towards 6k to play an oversold bounce. If I were shorting, I would have played it safe and waited for the break below $6345 and entered a short there and at this point would set a break even stop or perhaps a stop slightly above $6345. But again, not shorting this market personally. So lets look more into details of what is happening.
So we broke down. If in a position, a tight stop was at $6380 (most recent low of the tight range it was bouncing within). Conservative stop at $6345 (low of the entire 2 weeks of this tight range) and as we see over and over in this market, a quick flush down as multiple stops trigger and people exit their positions from this tight range we'd been in for about 2 weeks.
Bottom was caught at $6211 so not a ton of damage done but thus far a pretty weak bounce off the low.
Also in place is the same EMAs I use which are still playing catchup to the price, the 12 and 26. Watching for those to serve as resistance or a bounce upwards towards our previous box ($6345-6493) to give a rejection from the bottom of that box at $6345. Often prior support acts as future resistance once that support fails.
So, its again, a game of patience. Nothing screams enter a bullish position here. I need the bulls to either: 1. Prove themselves with a break of some resistance point. 2. Establish a clear higher low and higher high pattern on 4hour or higher timeframe. 3. News catalyst possibly but even those seem to fizzle out quickly lately.
So bottom line is same as it's been for the past month or so. Market is boring, volatility not really there for easy profitable trades. $6000-6500 is really no mans land to me and if we see $6345 area act as resistance, perhaps this no mans land tightens up a bit for the range. But fortunately stocks have plenty of volatility and allow for profitable trades at this time when crypto is boring.
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