I took some profit on Bitcoin. Here's why.

Hello Everyone,

Happy Saturday. This post has been posted twice now due to some technical difficulties so sorry for the delay.

I decided to take some profit on bitcoin today around $58,500 as I'm up over 25-30% on some of my buys and after taking some time to look at charts I think we may see a 5-10% correction down to 54-55k.

Here's why I think this:


1. I believe we are forming a very bullish pattern (inverted head and shoulders ) on the daily time frame. We would also bounce perfectly off of the 50 MA again. Every correction we've had bounced off the 50MA before continuing upwards.

2. Our Daily MACD buying momentum and crossover was fairly weak. This indicates bulls aren't as strong as they need to be.

3. The 4 hour timeframe has closed outside of its current trading channel. A new trading channel is going to form.

4. the 4 hour MACD is gaining selling momentum which is a short - medium term bearish signal.

5. Price action is looking like we could see a small downside as price is slowly drifting up as volume is drifting down on a 4hour chart. This is a bearish sign.

6. We are in a descending triangle pattern which we retest the top portion of the triangle (after breaking out) 60% of the time). This still makes us overall bullish!


Now when I said i took profit, i did not sell everything. I left a large amount in just in case we do continue upwards. Which, ultimately i think we are going upwards longterm. Afterall, we are in a bullmarket. Also, my previous buys were below 51k so I figured i was comfortable with taking some money off the table.

If you were one to enter somewhere between $57,000-$59,000 I believe you have nothing to worry about, depending on your time frame. We are still in a very bullish market overall. Just stick to your plan and be patient. Remember, there is a lot of volatility in crypto and things can change very quickly.

If you have not entered, this might be a great opportunity to enter. Buying the dip is a great way to start a DCA strategy or even a new swing trade.

Hopefully this analysis helps some of you. I am not always correct but i do believe we could see some short term pullback to the 54-55k area validating the inverted head and shoulders .

Please leave a thumbs up if you liked this post and comment your opinions on what you think!

And as always, manage your risk, stay patient, and good luck trading!