The past 4 days I have had a 24% increase to my total trading capital. I strongly feel like this is similar to the 7000 rally, where we kept getting new highs with the bearish divergence.
Do not open any big longs in this area. You may get something like a 4% profit, but that will be wiped out in a day when we drop. Set a tight stop if you want to scalp long. If it gets hit, just let it be. Attempting to open new longs in this range is dangerous.
Right now we are near the short zone of 6900. It looks like Bitcoin may want to correct to the 6600 levels from 6750 before moving up higher.
Therefore, open some short positions here. Do not worry when you are underwater. If you opened shorts at 7100, you would have been underwater, but would now be in great profit.
Short
6900-7000
Stop Loss:
7400 (manual). We should not break previous highs. A safer stop would be 7050.
Take profit:
This trade will be manual due to it being a big one. When we drop from 6900, it will likely take us below 6000 for good. There is a small chance of a correction to 6600, but when Bitcoin is 3500, a short from 6900 will be in great profit.
If this trade goes through, just let it run. This will be one of the bigger trades we may hold for months. You can increase leverage/take profit so you can scalp.
If 3500 Bitcoin seems impossible, keep in mind we were at 1000 a year ago. I remember when I joined this market when Bitcoin was sub 4000. 20,000 seemed so far away despite the huge bull rally. Now 3500 seems far away to some despite the strong bearish market.
Thanks for viewing. I appreciate every single like and follow. The past performances of my charts have greatly motivated me to keep posting.