I noticed we had an oversold bounce last night, but it was difficult to play and in the video I found that any good stops would best be tight, preferably no lower than the most recent swing low. We’re already in the midst of the breakdown of the ascending pattern, and you can always re-enter if (a) the price reached heavily oversold levels again (and it did) or (b) The price broke key resistance and began to play out the reverse pattern again. If possible, it’s usually good to sell a bounce play if the price quickly enters overbought territory. However, in current market conditions these shorter term trades can be tricky and maybe not worth it for most people. I see this overall as a buy-the-dip scenario, with the best stop being at the most recent lower swing low of 10880.
There was also a bit of a around 11640, so I expect further consolidation before we return to that level to retest.
That's all for this update. All the best!
BTC-USD Coinbase | Formed a double-bottom around 5am, and almost all of the alts follow this dump as well, some becoming heavily oversold on multiple time frames and both the stochastic and standard RSI. BTC did not hold up in the mentioned range of 11180 to the psychological mark of 11000, and today it quickly broke through the mentioned support range of 10500-10600 but then found support when bulls arrived to buy the dip. It’s pretty heavily oversold on the stochastic RSI and the doji at the end of this double bottom tells me BTC may see retracement here to 10600 and likely beyond. The Vix Fix has been calling for a bottom for over a day now. The short term support is 10400 but if we break it, we have some resistance between there and 10200. 10200 is a key support area, because there’s not much support between that and 9600. We have nearly played out the ascending wedge I’ve mentioned for days, but BTC can still potentially form a deeper right shoulder of the reverse head and shoulders!