Bitcoin: Traders Nervous Around 18,500 Resistance. Bearish Sign?
Bitcoin update: 17,600 was tested earlier today as it appears short term participants are beginning to get nervous? As price continues to gyrate around the 18,500 key inflection point, bearish reversal patterns are still likely to develop here. For this reason, we continue to AVOID any new swing trades until the criteria of our LONG ONLY swing trade strategy is met and it begins with the test of a major support level.
Key Support Levels:
At this point, we are waiting for price to test the 16K to high 14K area. That is where proportional support is likely to assert itself. Reaching our anticipated support does NOT justify a trade. Instead it begins the evaluation process to see IF price can provide a bullish setup and confirmation. It is only at this point where we can clearly measure risk and justify sharing a new idea.
Price Action Now:
Today's move from the 18770 high to the 17600 low demonstrates how FAST selling activity can assert itself. Even if today's candle establishes a bullish pin bar, the risk at these levels for a SWING TRADE is still unreasonably high. Keep in mind this is NOT the same for a day trade strategy, but as you can see without a well defined plan or decision making process, it is very easy to give back any recent profits as a result of an emotional reaction to a surprise price move.
Reactive trading (herd mentality) does not sustain consistency, and is reinforced by random rewards. That is why we employ a set of rules, and we simply trade the rules. These rules are not perfect, and can be hard on the intuitive demand for pleasure (or profit) as asserted by human nature. We missed over 3K points of profit since our swing trade exit at 13,250, BUT our account does not shrink as a result.
There are those who want action, and those who want to make money. More action does NOT equate to more money. Look no further than your personal track record to identify your true motivation.
Key Support Levels:
At this point, we are waiting for price to test the 16K to high 14K area. That is where proportional support is likely to assert itself. Reaching our anticipated support does NOT justify a trade. Instead it begins the evaluation process to see IF price can provide a bullish setup and confirmation. It is only at this point where we can clearly measure risk and justify sharing a new idea.
Price Action Now:
Today's move from the 18770 high to the 17600 low demonstrates how FAST selling activity can assert itself. Even if today's candle establishes a bullish pin bar, the risk at these levels for a SWING TRADE is still unreasonably high. Keep in mind this is NOT the same for a day trade strategy, but as you can see without a well defined plan or decision making process, it is very easy to give back any recent profits as a result of an emotional reaction to a surprise price move.
Reactive trading (herd mentality) does not sustain consistency, and is reinforced by random rewards. That is why we employ a set of rules, and we simply trade the rules. These rules are not perfect, and can be hard on the intuitive demand for pleasure (or profit) as asserted by human nature. We missed over 3K points of profit since our swing trade exit at 13,250, BUT our account does not shrink as a result.
There are those who want action, and those who want to make money. More action does NOT equate to more money. Look no further than your personal track record to identify your true motivation.
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