The corrective structure after the very sharp impulsive drop from 7.4k is very likely a contracting triangle.
Notice how each of the waves in the triangle appear to be in the same degree and very similar nature - sharp moves up and down.
MACD is also forming triangle
Notice how each of the waves in the triangle appear to be in the same degree and very similar nature - sharp moves up and down.
MACD is also forming triangle
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Looking like BTC is breaking down. My short trade is now risk free and in profit. Note
Thats your explosive break down!Note
BTC correcting right now for another leg down. Broke the previously. Expect a running or expanding flat structure.
Still have C leg to complete.
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This corrective structure is looking like mostly likely a regular flat. Expecting another leg down soon,
Hidden bearish div has been building up as well on 1hr and 30mins implying continuation of the trend.
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Couple of ways this can play out now. Either this abc is the whole of correction and we have another leg down before a bigger correction
This also can be part of the bigger correction and we just making first leg of larger degree correction before we go down to break the yearly lows.
Strategy will be the same to take a short position and move stops to breakeven incase second scenario plays out it will be a breakeven trade if not i'll be in a short for the leg down.
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EDIT - scenario 2 will be something like this Note
Making some changes to the count. I think this could be more valid in this case where the contracting triangle was the B wave in much larger flat structure given the recent price action. I wouldn't be in shorts unless they are very short term.
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Don't say I dint warn you about the shorts. :P
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.