Anyways I did not catch the initial selloff marked in orange. I will not go into why this would have been my exit point as I missed it, but more importantly what I do when I miss it. This is why we prepare for these moments by charting. Sometimes the most ridiculous levels happen. When I hear comments like "it will never go under $1100 or $1000 again", I can tell you with almost 90% surety these are the ones panicking this morning. Even as as I was on BTC' I still had labeled on my chart pullback areas. These become critical during selloffs as you already have set your mind on where to look for reversals. So in lieu of having a blank chart up on the screen with the last 4 bars red and wondering what to do, we have a chart on the screen of where there is likely to be a reversal and are planning our next move!
#1 I already had labeled on the chart the next fibb levels lower. (every equity I own has a chart with these levels)
#2 Generally we get early buyers come in at these levels along with scalp traders (just like I did last night) But I missed the chance this morning.
#3 I take the time to see how the market reacts at these levels before I act!
#4 I'm watching the market here to see if I need to exit or this is just noise. After all Bitcoin is king and was down the least of my coins this morning. This is a sign that the market STILL favors bitcoin!
#5 I'm drinking a cup of coffee looking for buying opportunities. Long term we are still in a bull market! I am looking for over sold coins that I can scalp up and I was able to cover my sells on ETH' and NEO' at a lower price today! I was beginning to think that would not happen! Good morning America!
Bottom line I am still in my trade, I am more concerned about looking for bargains then exiting here. But it is up on my screen and the 1 hour chart does not look that bad. At least in comparison to the majority of the charts this morning. Buyers have quickly bought the last two red bars as evident from the wicks. The first green bar has no lower wick which implies to me buyers are continuing to step into the market continuing from the previous bar. We have a second green bar as well but it has not closed yet so I am monitoring it. Either way there are wicks to the upside which is a sign of people exiting or scalpers covering. Keep in mind bots are trading here to. So I'm just being patient.
In closing, sitting on cash is probably the greatest thing we have going for us right now, regardless if we lose on this trade or not, 25% of my portfolio did not go down at all.
#1 Market sentiment - Everyone is posting $5000 -$8000 BTC charts
#2 Troll Sentiment - They are out in full now proclaiming how they called this all along
#3 "TA" experts having 4-5 indicators on their chart not even knowing what they mean. So here is one that says it all and why I believe we are close too, or the bottom is already in!
Also reading many Troll comments its obvious they have not been following since Dec 20th when we called the correction and I specifically stated that trading corrections is risky. I never claimed the correction was over period! But there are bull runs in bear markets and these are tradeable but risky trades. I understood this going into the last trade, and seeing where the RSI was on the daily and that it bounced off the 40 I was willing to take that risk.
Above 12787, a promising bullish scenario is waiting with targets at 22500 and 24000.
However, it is more likely that Bitcoin cannot overcome the 12787 resistance and will lose further value over time. The downside target is 5568.
Until now Bitcoin followed a simple story book. Read more about it here: