Bitcoin is now approoaching important resistance again at the break level/original shorting point from yesterday, at 6445-
6510, with the additional problem of the old dynamic support line that propped up the rallies from the summer lows hanging
above it 6515. So it's a near term short for day traders from 6510 with a stop 50 points above but only back to 6300,
maybe 6165.
We need to look for next long potential for all traders if 6550 is breached on the upside, looking to get long on the first
retest of the old dynamic (which we can see waiting just above current price on the chart) so looking to get long if Bitcoin
penetrates the dynamic and then comes back down to test it from above and holds, looking for an upside target at 6940
before closing out and going short again.
Yesterday into this Morning UK time
Bitcoin hit the downside target centred around 5645 for a closed out 800 point gain (yesterday' 3 early trades yielded
200 points on the sell from 6300 to 6050, another 200 to 450 points on the buy from 6050 and then 800 points on the short
from 6445 down to the first target cetred at 5645 - so a total return of 1200 to 1450 points yesterday) - before it all went
wrong. We were looking to short Bitcoin again as it came up to test the upper parallel (with a stop 50 points above the
parallel when touched) which was triggered. But Bitcoin never stopped at the parallel, it's power to contain the wave now
spent, and telling us that downward pressure is waning, at least in the near term. So 50 points was lost here. We needed
that plan B: watch for breaking of the parallel, then on next pull-back, the parallel must turn from resistance into support,
holding up the first decline after breaking above it, showing the trend-change is occurring with this confirming signal, and
giving day traders only a chance to go long on the retest (with stops 50 points under the parallel on first touch/first retest
from above), looking for a rally back up to 6445 where any longs need closing out.