Bitcoin madness - welcome back, volatility!
Hello Traders
i hope you had some nice sweets profits in the last days. Bitcoin made a nice upswing and is currently correcting it while putting up some nice signs for us.
After almost completely correcting the upmove from 8600 USD, BTC is testing the .236 retrace of the correction that just happened as an overhead resistance at 8890.
It has been constantly trading within the 0 and the .236 retrace which is an indicator of traders and whales accumulating positions and shaking out overleveraged traders.
The steadily declining volume also indicates a consolidation and a strong move ahead of us.
The RSI looks very healthy again after being heavily overbought the last two days, and the MACD has crossed over bullish and get's close to the zero line which is also giving us upward momentum.
All these things look good and healthy and indicate an ongoing upwards movement.
But we have to be cautious here: Since there has been a lot of artificial price action (the pumping) with very low volume, mainly upwards, meaning there will be no support below us after the key levels of 8500 (start of last pump, longs will defend this entry) and 8100 (current point of control).
So my current strategy is to go long in the green box and hedge those entries with short positions at the 21 EMA which is also highly resistant currently.
If BTC breaks out my longs will win, if it breaks down the hedge makes sure I will not take a loss.
This is is no financial advice, but I wish you the best of luck!
i hope you had some nice sweets profits in the last days. Bitcoin made a nice upswing and is currently correcting it while putting up some nice signs for us.
After almost completely correcting the upmove from 8600 USD, BTC is testing the .236 retrace of the correction that just happened as an overhead resistance at 8890.
It has been constantly trading within the 0 and the .236 retrace which is an indicator of traders and whales accumulating positions and shaking out overleveraged traders.
The steadily declining volume also indicates a consolidation and a strong move ahead of us.
The RSI looks very healthy again after being heavily overbought the last two days, and the MACD has crossed over bullish and get's close to the zero line which is also giving us upward momentum.
All these things look good and healthy and indicate an ongoing upwards movement.
But we have to be cautious here: Since there has been a lot of artificial price action (the pumping) with very low volume, mainly upwards, meaning there will be no support below us after the key levels of 8500 (start of last pump, longs will defend this entry) and 8100 (current point of control).
So my current strategy is to go long in the green box and hedge those entries with short positions at the 21 EMA which is also highly resistant currently.
If BTC breaks out my longs will win, if it breaks down the hedge makes sure I will not take a loss.
This is is no financial advice, but I wish you the best of luck!
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