In the past few days, we have seen a significant drop in volume
. I believe we were trading somewhere around 1.2 mil not even a week ago? As I type this up, we're looking at about 278k on Gdax. While we've still been experiencing some pretty healthy 10-15 dollar swings, it's very clear that we're going through a slowly upward consolidation. The mess of lines drawn indicate Fib channels that we're set in, with the orange line indicating our upward support. Assuming we hug this support for the next few days, we should see some sort of test at a breakout around the 166 region. As we know, however, things don't always pan out accordingly, and there's always the possibility of us testing 170-175 come the next day or so. While I'm overall bullish
, I welcome opportunity when it presents itself. I've yet to see any hard evidence pointing towards this mystical run down to the 100/80 region, but I'd never rule it out. I personally think the end of February will incite this bull rally we've been hoping for, so with some 15 days or so left until the end of the month, I could absolutely see a rally down before that happens, but we must await signals.
As far as my personal play is concerned, I'm looking to grab a flip around 169, with a buy back around 159, maybe 155 if I'm feeling bold
. If you like to play the short/swing game, more power to you, as I'm all about it, but I would tread very lightly at this time, because I believe that once we break past 175, we could see some serious momentum, and we're dancing dangerously close to that area. As tempting as it is to catch every little flip, you're simply rolling the dice a lot of the times.
Trade safe and have fun!