With a break below the parabolic channel and a bearish bat (which I accurately pointed out in a previous chart found below), the sentiment is mostly bearish now.
There are now two possible scenarios I can see going forward:
1.) A head and shoulders emerging, bringing us to even lower points testing each support level drawn on the chart, with the strongest being ~4200.
2.) A bullish pennant, drawn in orange with an ABCDE triangle wave alongside it.
Scenario 1 is more likely, but if you decide to short, look for a bullish pennant to form and cover that short if a breakout is confirmed.
Trade advice (for day traders):
If you are long, close that position, possibly waiting for the daily candle to close below the parabolic channel.
If you are willing to short (some people never short cryptos):
* Entry zone - w/e price it is when you read this, assuming you make the trade today, as of publishing this idea.
* Stoploss - 12900, just above 'D' in the triangle wave. If it goes there, that would indicate that a bullish pennant is becoming more likely.
* Conditional Stop - If a bullish pennant does form and a breakout is confirmed, close the short. This would likely occur at a price lower than the stoploss.
* Targets - 7610.00; 5661.13; 4271.69
There are now two possible scenarios I can see going forward:
1.) A head and shoulders emerging, bringing us to even lower points testing each support level drawn on the chart, with the strongest being ~4200.
2.) A bullish pennant, drawn in orange with an ABCDE triangle wave alongside it.
Scenario 1 is more likely, but if you decide to short, look for a bullish pennant to form and cover that short if a breakout is confirmed.
Trade advice (for day traders):
If you are long, close that position, possibly waiting for the daily candle to close below the parabolic channel.
If you are willing to short (some people never short cryptos):
* Entry zone - w/e price it is when you read this, assuming you make the trade today, as of publishing this idea.
* Stoploss - 12900, just above 'D' in the triangle wave. If it goes there, that would indicate that a bullish pennant is becoming more likely.
* Conditional Stop - If a bullish pennant does form and a breakout is confirmed, close the short. This would likely occur at a price lower than the stoploss.
* Targets - 7610.00; 5661.13; 4271.69
