Bitcoin faced a sharp selloff at relative highs at $52.8K, which brought us down to support around $50K. If you recall, we proffered a trading idea where if bitcoin could definitively break $50K, and retrace, then we would enter a long trade at this level. This trade is now in effect, and we are using the lower wick at $50K as an idea for a stop loss. A green triangle on the KRI further supports this trading idea. The profit target would be relative highs at $52.8K or so, but we will keep monitoring the trade for momentum either way. The trade has more than a 4:1 risk:reward ratio, which is pretty good for crypto. If we are wrong we will find support at $49.7K. Both the Kovach OBV and Chande have dipped notably, suggesting we are oversold.
Trade closed: stop reached
Another dump in Bitcoin, stop loss triggered 🤦♂️ Waiting for the market to stabilize before ascertaining another level to buy. We are back in the $40K handle, which is not a good sign for bulls 😰
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Join my discord at discord.io/quantguy
Related publications
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.