BTC Waterfall as expected! Still another 4 hour lower high
Wow, we had some nice volatility today.
And this was the cascade I was speaking of yesterday. Yesterdays post I stated "We have a lot of recent lows from 4 hour chart to be watching including $6208 from today, then $6191, $6177, and finally our low from when the bounce first started on this move at $6116. I would not be surprised to see all 4 of those levels get taken out together as many in positions will utilize those areas as stop losses and odds of us cascading down and straight through them is fairly high in my opinion if RSIs are able to cool off first".
And just over 24 hours later we watched the drop from $6330's straight through all of those prior levels in about 1 hour with our new bottom at $6106. This is just a simple thing of recognizing where stops will likely be triggered and it won't matter if news related or not, stops are established and once triggered, we see the waterfall effect. The positive out of this is the bulls bought the dip hard. Traders were waiting at the bottom for each resistance to be taken out to buy the dip, give the V shaped recovery and then scale out along the way up. The negative, even with a 6-7% bounce in 30 minutes, the 4 hour chart still only gave another lower high with our top at $6511 compared to our most recent lower highs of $6530, $6565, and $6580. Same deal, traders recognizing where the resistances will be and scaling out prior to lock in profits.
Also on a positive tho, just as we had a bunch of lows stuck together that could all get taken out at once, we now have a bunch of lower highs all close together and if the bulls can get another push up, would be watching for them all to get taken out together. Shorts will have stops at these levels just as the longs did down at the lows.
Happy Trading! Enjoy the volatility!
Just My 2 Sats!
And this was the cascade I was speaking of yesterday. Yesterdays post I stated "We have a lot of recent lows from 4 hour chart to be watching including $6208 from today, then $6191, $6177, and finally our low from when the bounce first started on this move at $6116. I would not be surprised to see all 4 of those levels get taken out together as many in positions will utilize those areas as stop losses and odds of us cascading down and straight through them is fairly high in my opinion if RSIs are able to cool off first".
And just over 24 hours later we watched the drop from $6330's straight through all of those prior levels in about 1 hour with our new bottom at $6106. This is just a simple thing of recognizing where stops will likely be triggered and it won't matter if news related or not, stops are established and once triggered, we see the waterfall effect. The positive out of this is the bulls bought the dip hard. Traders were waiting at the bottom for each resistance to be taken out to buy the dip, give the V shaped recovery and then scale out along the way up. The negative, even with a 6-7% bounce in 30 minutes, the 4 hour chart still only gave another lower high with our top at $6511 compared to our most recent lower highs of $6530, $6565, and $6580. Same deal, traders recognizing where the resistances will be and scaling out prior to lock in profits.
Also on a positive tho, just as we had a bunch of lows stuck together that could all get taken out at once, we now have a bunch of lower highs all close together and if the bulls can get another push up, would be watching for them all to get taken out together. Shorts will have stops at these levels just as the longs did down at the lows.
Happy Trading! Enjoy the volatility!
Just My 2 Sats!
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