Confused and dazed, aren't You? Well, I think not everyone.
Stop loss above saved my life (Look at previous idea for latest trade management, explanation and my calls history also) signalling trend reversal. Traders while considering using my idea to practice my accuracy should read very carefully every step to outperform the market with proper strategy. There is 1D chart of Bitcoin traded on Bitfinex. I use this one because We see the strongest moves in this space. I also noticed great short closure that made this recent spike. So there could be 2 things pushing the price up:
1. breakout. This is quite strong signal, but are sometimes broke with fakeouts, especially when at sharp angle.
2. Bitfinex closing short. However it is just part of closed short. Only Bitfinex did that large spike, hauling other exchanges at lucrative level. Closing whole short would occur in true breakout reversal from red resistance line and 50.
Alright. So why short?
1. No true power, red bar dominating local group. Just harvest after tax reckoning selloff. Market Gods received massive bunch of coins, but interest still tends to fall.
2. Pump aka'short squeeze.
3. Triangle resistance calling.
4. Neckline of retesting (explained at 4 hr chart). This line is also big short line, where strong traders still could have opened positions. This line was occupied with hard battle since bubble burst. First testing resulted with volatile crossover, second one painted just showing weakness at this level. This time We are getting closer to this line within channel.
5. $ 6000 floor as the only reliable horizontal resistance. Round number - key level. There You have yellow puzzle to solve.
6. haven't been oversold yet. In my previous idea I stated that It is likely to go under 30.
7. Great in Big Pattern( ). This comes from my own experience, where this kind of situations ended with High Hopes, pinfkloyd tells Ya.
This leds us to very important question: Is this risky? And where to stop in case of momentum continuation?
The answer is: This is very unpredictable phase, where everything could happen. Whole my theory could be just nuked with sharp green candle marking further fishing. To confirm this, price should close above triangle resistance line and 50. This would be a perfect place for stoploss.
I share this to You because I see great top catching possibility, nothing more. My target is to acquire Your view on my strategy to develop and improve my teaching skills. Even If trade is stopped, We will look for another short entry point until true bull will mark its spot. Remember that breaking through main resistance should be confirmed with decent .
4hr chart promised
1 hr chart.
Don't You smell cunning knife, people?