Potential Short Opportunity~ How low can the BTC go?
Good morning all, today I present to you a nice little short opportunity which could be playing out on BTC.
Here we have a rising wedge which pumped us into a small uptrend- which almost immediately printed us a flag.
This sort of flag is generally a bullish occurance, but given the bearish divergence that occured on the RSI and the early turn further down the flag with less buying volume it seems this is looking to break out on the downside and in long form a potential double bottom at the 7.2-7.3k region.
If we close below the bottom trendline and fibline, I see further retracement occuring in this situation.
The reason why the stop is above the previous candles open and fibline is because there is always the potential for a bounce.
Coupled with the fact the S&P 500 could potentially crash (affecting BTC almost directly).
Here is a chart of S&P 500, by someone else showing us the stock market crash of 1984 vs what it is currently doing right now.
Two last facts to prove a further short- the wave trend is showing no signs of a minimum turning point given it's situation and when the 25 EMA rejects it is usually a hard downtrend- look before the 6k for reference.
FYI when I started writing this BTC was at 8.3k, which is now at the 8.2k.
No trade occurs for myself unless there is a close on the downside of my entry zone.
Find the inverse coins to alts to truly profit, take notes of these.
This is NOT a buy OR a sell signal. I'm not a financial adviser and nothing I say is a fact, any losses made through these decisions do not hold me accountable and you should never invest more than you're willing to lose.
If you liked this short post, be sure to follow and like. It really helps out :D
~Xander
Good morning all, today I present to you a nice little short opportunity which could be playing out on BTC.
Here we have a rising wedge which pumped us into a small uptrend- which almost immediately printed us a flag.
This sort of flag is generally a bullish occurance, but given the bearish divergence that occured on the RSI and the early turn further down the flag with less buying volume it seems this is looking to break out on the downside and in long form a potential double bottom at the 7.2-7.3k region.
If we close below the bottom trendline and fibline, I see further retracement occuring in this situation.
The reason why the stop is above the previous candles open and fibline is because there is always the potential for a bounce.
Coupled with the fact the S&P 500 could potentially crash (affecting BTC almost directly).
Here is a chart of S&P 500, by someone else showing us the stock market crash of 1984 vs what it is currently doing right now.
Two last facts to prove a further short- the wave trend is showing no signs of a minimum turning point given it's situation and when the 25 EMA rejects it is usually a hard downtrend- look before the 6k for reference.
FYI when I started writing this BTC was at 8.3k, which is now at the 8.2k.
No trade occurs for myself unless there is a close on the downside of my entry zone.
Find the inverse coins to alts to truly profit, take notes of these.
This is NOT a buy OR a sell signal. I'm not a financial adviser and nothing I say is a fact, any losses made through these decisions do not hold me accountable and you should never invest more than you're willing to lose.
If you liked this short post, be sure to follow and like. It really helps out :D
~Xander
Note
Also some inverse coins to look out for in some tough times of BTC: DGD, SIA, ONT.Note
Meant descending wedge, not rising wedge :)Note
Looks pretty bearish, bad volume and not the best candle. Could be a period of squeeze, would need to break lines I have set for more rash downwards to occur.
Note
Looks like a flag. Buying volume struggling hence the inverted hammerish candle.
Note
Volume is currently only indicator of movement in flag.
Note
More of a descending triangle than a flag~ bearish pattern. Can break out either way if rejected at trend line.
Note
Descending triangle played out as predicted, expect some sort of a slow bleed, continuation or a new pattern to form. We will have to see what the buying volume is in this region to gage what happens. This is a safe place to close your short, but I will personally keep mine open.
Trade closed: target reached
Low 7300s have been achieved. Well done all.Next play will be looking at a potential long for the wedge that may form/break on the next couple of candles.
Note
Opportunities for swinging inside a potential flag could be here.
Disclaimer
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.
Disclaimer
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.