For next time: how to spot the reversal, making money as a bear.
Fib extensions.
Draw a high from the previous high to the bottom of it's real correction (4h retraces to the 20MA, in BTCUSD's case, work.)
Now, extend to the current peak.
Is it failing to retest the 0.236? Get out, prepare a to buy at the 0.618 if it holds.
0.618 holds? buy but prepare to sell at 0.382.
0.618 fails? try at 1.0
Buy at 1.0 but prepare to sell at 0.618.
0.618 is now resistance?
Congratulations, you have a bearish reversal.
Feel free to keep playing this game of buying and selling at fib levels and moving averages: if it will drop to 1.618, sell again at 1. Drop to 2.618, sell at 2.0, drop to 3.618, sell at .. well, 2.0 again if it will reach it. otherwise 2.618
If there's signs of a reversal, you can draw a new fib retracement from the top to the newly minted bottom and repeat the same game up the stairs
What i'm trying to say is..
Bitcoin isn't done dropping, but that doenst mean there arent any opportunities.
Draw a high from the previous high to the bottom of it's real correction (4h retraces to the 20MA, in BTCUSD's case, work.)
Now, extend to the current peak.
Is it failing to retest the 0.236? Get out, prepare a to buy at the 0.618 if it holds.
0.618 holds? buy but prepare to sell at 0.382.
0.618 fails? try at 1.0
Buy at 1.0 but prepare to sell at 0.618.
0.618 is now resistance?
Congratulations, you have a bearish reversal.
Feel free to keep playing this game of buying and selling at fib levels and moving averages: if it will drop to 1.618, sell again at 1. Drop to 2.618, sell at 2.0, drop to 3.618, sell at .. well, 2.0 again if it will reach it. otherwise 2.618
If there's signs of a reversal, you can draw a new fib retracement from the top to the newly minted bottom and repeat the same game up the stairs
What i'm trying to say is..
Bitcoin isn't done dropping, but that doenst mean there arent any opportunities.
