So there aren’t a lot of really strong (safe) opportunities in the market at this very moment going either way (long or short).
Thus, this seems like a perfect time to take a bit of a gamble and assume that the trend will last for more than just the 24–48 hours that it has lasted for and that the price of Bitcoin will eventually break through some of these lower support points underneath its price.
In the meantime, let’s check out some charts.
Now, you may be thinking,
“What the hell? That isn’t a valid downtrend line"
You're correct.
But the author has a theory that the impact of trendlines do not magically disappear the second that they're crossed.
Hence, the concept of 're-testing' in charting.
Now, assuming that this trendline actually still has a palpable impact on the price (there are other indicators to suggest that this point is valid as well), then we should be expecting the price to get knocked back from where it is sooner than later.
Let’s check out the next logical points for the price to travel to.
So, if our theory is correct, then the price should at least draw down -2.23% (which is a +2.23% gain in shorts world).
This isn’t a bad gain. Let’s verify it with some additional indicators.
Relative Strength Index
This is the RSI(14) ; Custom filter applied to it. 2H TF
Upon first glance, this RSI chart is screaming ‘go long!’
But we have also seen multiple instances of LH (lower highs) on the RSI as well, leading the author to believe that there is limited room for growth for the RSI to maneuver.
The RSI can also turn back down and flounder in the oversold zone for a bit longer. this is something that has happened before to several different projects during the bear market.
Word of Caution
To keep it short and simple, the above picture is a moving Fib zone (not a large Donchian) with different partitions based on Fib levels that make dissecting the price a bit easier.
From what we can see above, a sudden break above this overhead resistance (this is the H4 by the way), could result in the price surging up substantially.
However, the volume below is telling us that this is pretty unlikely to happen (for the time being).
The last two green volume bars are looking extremely lackluster to say the least.
Definitely no movement at this point in time that would justify a long position from where things are at right now.
Conclusion
Therefore, with all things considered, Bitcoin seems ripe for yet another short position.
We’ve been shorting this thing since $7k-$7.3k. Author is assuming that individuals consolidated their profits on the short and perhaps have no position at the current moment.
This is meant only as a suggestion, not financial advice. The author is not currently invested in any tokens/coins/cryptocurrency/alternative investments at this point.
Thus, this seems like a perfect time to take a bit of a gamble and assume that the trend will last for more than just the 24–48 hours that it has lasted for and that the price of Bitcoin will eventually break through some of these lower support points underneath its price.
In the meantime, let’s check out some charts.
Now, you may be thinking,
“What the hell? That isn’t a valid downtrend line"
You're correct.
But the author has a theory that the impact of trendlines do not magically disappear the second that they're crossed.
Hence, the concept of 're-testing' in charting.
Now, assuming that this trendline actually still has a palpable impact on the price (there are other indicators to suggest that this point is valid as well), then we should be expecting the price to get knocked back from where it is sooner than later.
Let’s check out the next logical points for the price to travel to.
So, if our theory is correct, then the price should at least draw down -2.23% (which is a +2.23% gain in shorts world).
This isn’t a bad gain. Let’s verify it with some additional indicators.
Relative Strength Index
This is the RSI(14) ; Custom filter applied to it. 2H TF
Upon first glance, this RSI chart is screaming ‘go long!’
But we have also seen multiple instances of LH (lower highs) on the RSI as well, leading the author to believe that there is limited room for growth for the RSI to maneuver.
The RSI can also turn back down and flounder in the oversold zone for a bit longer. this is something that has happened before to several different projects during the bear market.
Word of Caution
To keep it short and simple, the above picture is a moving Fib zone (not a large Donchian) with different partitions based on Fib levels that make dissecting the price a bit easier.
From what we can see above, a sudden break above this overhead resistance (this is the H4 by the way), could result in the price surging up substantially.
However, the volume below is telling us that this is pretty unlikely to happen (for the time being).
The last two green volume bars are looking extremely lackluster to say the least.
Definitely no movement at this point in time that would justify a long position from where things are at right now.
Conclusion
Therefore, with all things considered, Bitcoin seems ripe for yet another short position.
We’ve been shorting this thing since $7k-$7.3k. Author is assuming that individuals consolidated their profits on the short and perhaps have no position at the current moment.
This is meant only as a suggestion, not financial advice. The author is not currently invested in any tokens/coins/cryptocurrency/alternative investments at this point.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.