BTC:USD 4 hour chart DAILY UPDATE (day 98)
Yesterday I went to a wedding shortly after making my daily post and have been away from the charts for almost 24 hours. This morning I woke up bleary eyed and am trying to get back into the swing of things after eating way too many carbs for breakfast.
The price of Bitcoin continues to grind upward after breaking through the 26 day downtrend (red dotted). The stochastic has re entered the overbought zone on the 4 hour, but it still has plenty of room to go on the 1d-3d timeframes.
I warned of a possible bull trap over the weekend when the liquidity would be low and the order books would be thin. The next 24-48 hours should give us a good indication of what the next 7-10 days will look like.
We rallied through the 12 period EMA on the daily chart which was pegged as the first major area of resistance to watch out for. Now we are approaching the 26 day EM, which is currently hovering right on $8,000. If we can get through that area then I would expect a continued rally over the following 7-10 days. That would bring us to the next major area of resistance from $8,750 - $8,850 which was outlined in yesterday's post.
I am continuing with my plan of selling spot Bitcoin and Ethereum at key levels of resistance, and then opening a leveraged short when/if all of the ducks line up in a row. I do not trade with more than 10% of my total roll, so if we do rally back to $10,000 and beyond then I will still be positioned very nicely. However, I am viewing that as very unlikely and will continue to trade accordingly.
Until next time trade happily and remember that likes/comments/follows are greatly appreciated!
The price of Bitcoin continues to grind upward after breaking through the 26 day downtrend (red dotted). The stochastic has re entered the overbought zone on the 4 hour, but it still has plenty of room to go on the 1d-3d timeframes.
I warned of a possible bull trap over the weekend when the liquidity would be low and the order books would be thin. The next 24-48 hours should give us a good indication of what the next 7-10 days will look like.
We rallied through the 12 period EMA on the daily chart which was pegged as the first major area of resistance to watch out for. Now we are approaching the 26 day EM, which is currently hovering right on $8,000. If we can get through that area then I would expect a continued rally over the following 7-10 days. That would bring us to the next major area of resistance from $8,750 - $8,850 which was outlined in yesterday's post.
I am continuing with my plan of selling spot Bitcoin and Ethereum at key levels of resistance, and then opening a leveraged short when/if all of the ducks line up in a row. I do not trade with more than 10% of my total roll, so if we do rally back to $10,000 and beyond then I will still be positioned very nicely. However, I am viewing that as very unlikely and will continue to trade accordingly.
Until next time trade happily and remember that likes/comments/follows are greatly appreciated!
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