BTC Update! Lower highs? Bull Flag? Shorts at highs? Volatility?
Quick update on a few things I'm watching last few days for BTC.
4 Hour - after we hit our recent high for this year, we are now seeing a couple of lower highs. Generally I view this as potential consolidation beginning for the daily chart but thus far bulls aren't sinking to lower lows on 4 hour. So I'm fairly neutral here and just patient.
Daily - looks as well that it wants to consolidate but bulls are holding things fairly well giving a sign perhaps this is just a bull flag building up to make that charge for the anticipated heavy resistance in the $6,000's I've been talking about. This would be ideal scenario in my opinion for the bulls. Keep the bullish momentum in the form of a bull flag, don't lose the EMAs as support and then see the big bull volume to challenge the resistance zone I'd previously highlighted.
BTC Shorts chart - anyone who follows the shorts chart should have noticed we just hit a high since January. This is very interesting to me and it appears bears are piling in with anticipation that bulls cannot get through $6,000's and we see a bearish push back down. The flip side of this is if shorts climb too high and bulls do prove themselves we would likely see a short squeeze which could provide the bullish momentum to bust through the $6,000's.
So I am anticipating a strong chance of some nice volatility this week. I am personally back to all cash after getting stopped out of the remainder of my ONT trade and it was a great reminder of why I utilize higher lows as stop losses. As once the uptrend was lost, it had another 10% further of downside and went back below my average entry. It has recovered some but still remains well below my last sell price. I try my best not to ever fight the trend so establish a plan and stick with it. Fake outs in both directions do occur and nothing is 100% going to work but having a plan and steadily taking profits while limits giving back profits or limiting any losses seems to work well for me.
Lets see what the week brings!
Just My 2 Sats!
4 Hour - after we hit our recent high for this year, we are now seeing a couple of lower highs. Generally I view this as potential consolidation beginning for the daily chart but thus far bulls aren't sinking to lower lows on 4 hour. So I'm fairly neutral here and just patient.
Daily - looks as well that it wants to consolidate but bulls are holding things fairly well giving a sign perhaps this is just a bull flag building up to make that charge for the anticipated heavy resistance in the $6,000's I've been talking about. This would be ideal scenario in my opinion for the bulls. Keep the bullish momentum in the form of a bull flag, don't lose the EMAs as support and then see the big bull volume to challenge the resistance zone I'd previously highlighted.
BTC Shorts chart - anyone who follows the shorts chart should have noticed we just hit a high since January. This is very interesting to me and it appears bears are piling in with anticipation that bulls cannot get through $6,000's and we see a bearish push back down. The flip side of this is if shorts climb too high and bulls do prove themselves we would likely see a short squeeze which could provide the bullish momentum to bust through the $6,000's.
So I am anticipating a strong chance of some nice volatility this week. I am personally back to all cash after getting stopped out of the remainder of my ONT trade and it was a great reminder of why I utilize higher lows as stop losses. As once the uptrend was lost, it had another 10% further of downside and went back below my average entry. It has recovered some but still remains well below my last sell price. I try my best not to ever fight the trend so establish a plan and stick with it. Fake outs in both directions do occur and nothing is 100% going to work but having a plan and steadily taking profits while limits giving back profits or limiting any losses seems to work well for me.
Lets see what the week brings!
Just My 2 Sats!
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