How to Approach Bitcoin Short Term Bearish Signals
I'm still long at $7800 and took some profit so I could lower stop, but the bearish movement is now about 4 weeks old and we are well below the 200 SMA and closing dailies below the 200 EMA, so BTC will have a lot of work to do the remaining 30 days of this cycle to prove its ready to trend bullish.
If we end up with a left translated cycle or a failed cycle below 7k then I close my long (if not stopped out) and switch to a bearish/neutral posture and start to do more short term trading (likely both directions). I will not look for long term longs anymore. That doesn't mean we can't go up. It just means that I will need to see a full bullish right translated cycle that gets back above the major 200's for me to shift back into a long swing trade.
If we end up with a left translated cycle or a failed cycle below 7k then I close my long (if not stopped out) and switch to a bearish/neutral posture and start to do more short term trading (likely both directions). I will not look for long term longs anymore. That doesn't mean we can't go up. It just means that I will need to see a full bullish right translated cycle that gets back above the major 200's for me to shift back into a long swing trade.
Note
We are back to the bottom and I'm 100% out of my position. Its a TD9 on the daily and severely oversold so I expect a bounce is probable. And I wouldnot be surprised to see a fairly big bounce and a big daily candle. However, I will not take any position until I see how this plays out. Probably will wait for the next cycle low in roughly 2-4 weeks. In other words, BTC bulls have a lot to prove before I'm confident they are ready trend. If it make as new low, then we have a cycle failure and that could lead to a lot more downside. After 7k, there is a big volume gap with no resistance. Its possible we could flush that area again but I'm not eager to buy after a move to $10600 failed within a month.
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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.