Don't Be Fooled, Bitcoin is still in a Bear Trend
Updated
We had an impressive rally over the last two days, but if you zoom out a bit we are clearly still in a bear trend. In my opinion the rally is mainly attributed oversold conditions and with the large number of open short positions that are getting squeezed. We were oversold for almost all time frame just 2 days ago so it shouldn't be a surprise that we were due for a bounce. Add in the fact that we had large short positions built up during the week and we get an impressive rally.
However, because I believe the bearish trend is still intact; I would look for areas to enter a short trade. Currently, I would target a range between $7400 - $7,600 for a short entry within the next 24hrs or so. There's a good chance that it will reject off the trend line just above $7,600 as it has respected that resistance for about a month now. It's also right below the cloud, which is where I am picking my range to scale into.
However, because I believe the bearish trend is still intact; I would look for areas to enter a short trade. Currently, I would target a range between $7400 - $7,600 for a short entry within the next 24hrs or so. There's a good chance that it will reject off the trend line just above $7,600 as it has respected that resistance for about a month now. It's also right below the cloud, which is where I am picking my range to scale into.
Trade active
This is pretty close to what I call a perfect trade. I would take some off take table here at $7,145 and let the rest ride. If you are willing to hold for a couple days, I think can go considerably deeper.
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.