A good space for day traders, trading between the lines of , which continue to work quite well, so
far, just as they have done over the last couple of weeks now. But for swing traders Bitcoin gave the first unreliable
technical signal for quite a while - that break below 7531 was the first heart-breaker, the first time this beautiful creature
has let us down, technically speaking, for a long time...and it's looking more and more false as each minute ticks away now.
Day traders at least had the next support line at 7426 to close out shorts, but swing traders looking to short off the next
rally back to 7531 (with stops 50 points above) - a technically sound trade - will have been swept away. Apologies.
Even more annoying, with all this price action overnight there was no guidance to get long again and buys at 7531 had
already likely been stopped out - so many have missed a large part of this move up from 7531 now, me too, and it's extremely
frustrating and annoying. Occasionally Bitcoin can mess with the best laid plans for the weekend.
We are where we are. Back on the trail.
Looks like it will grind away to the top at 7990-8000 again. Thankfully it's trading back above 7717, the freezer lid level
which will continue to play an important role this weekend. Whilst above here Bitcoin is still wanted, but under that line
not so much. As bears won the day in the end yesterday and China did indeed drive the price lower through the first
couple of hours of their session, but that break below 7531 screwed up a perfect entry for this next challenge on the
highs. Damn. Move on. Play the range on low volumes or await a possible break above 8000, which will need high
to make it happen. Probably only Chinese buying power can achieve this over a weekend, so the first couple
of hours of their seession could pay dividends, maybe...
Bitcoin is positive above 7717 and whilst above here will try to grind towards the highs where it becomes
a sell again for day traders playing the range. And if at some point we see 8000 broken, it should be followed, as per
weekend breakout (last comment). The space between 7717 and 8000 belongs to day traders. As is the space below 7717
down to 7531. So 7717 is now the likely for the day - should this fail at any point later it turns negative again in
near term back to 7531 - where it becomes a buy again with stops 50 points below. Because of that signal break below
7531 it makes 7717 even more important for Bitcoin from here. It really is the freezer lid today by look of things.
All good above, potentially turning over into bad below.
Day traders will only turn against Bitcoin with a little more aggression if they see it broken and then it becomes resistance with small pin bars forming under this line. Only then will Bears get control back from here.
I'm thinking it's textbook ATH shakey hands syndrome why all the bullish indicators are failing.. It's a good lesson each trade at this level.
Problem is the volumes aren't promising..
The huge cup to the right looks really bullish but beware of the fact that if we hit the neckline of the double top we are super bearish..
Now probabilities with cryptos is hard to say .. It's going to be my life's work to document it !! otherwise get your hands on the encyclopedia of chart patterns..
Problem is, and it's stated very clearly in history.. ATH trading is not predictable.. we have to find our own rules.. Be quick and relentless.. Be without ego.. Be "active" they say !