2/7/18 **BTC/USD** Bears are back in town, but….
For How long?
**Volume** - To me, this is looking like a significant indicator. We can see this is the highest pump of volume for 2018. So far, a bullish bounce is in effect.
**Support & Resistance** - We saw a piercing of the wedge support line with a bullish response bringing us back inside the trading wedge. The sentiment we see is weak sellers being responded buy stronger buyers I would personally prefer this then buying above the resistance line and then selling bringing us back DOWN. This would have shown week buyers being responded by stronger sellers. We are currently still trading inside the wedge pattern. I am looking towards the apex of this wedge to force price action.
***ALSO*** The base support line for this sell off coincides with the support of the 7k ATH sell off in Nov. Descending wedges tend to bring bullish impulses.
**Fib Lines** The .236 fib line is also 7k. On 1 day candles, this is where the body of the candles found support. I am also looking to this area for new support for a higher low. to confirm a bullish reversal.
**Ladder buys** I had limit buys set for 5900, 6400, 6900. I will likely have similar ladder buys set up again.
Over all, the meeting in DC cleared some FUD out of the air. I believe those that are HODLing have been given a wave of confidence. I do believe most of the weak hands have been shaken out so I personally don’t expect another massive sell off piercing the support line as hard as on the 5th. This is a game of Highs and lows. It looks like we are creating a high now… We may have hit the short term top, and now be heading to a new bottom OR we may see another impulse into tomorrow and then create a low. Either way I am not BUYING at these levels, I have some small day positions I have sold and replaced new buys. Don’t Stop Winning!
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