Short

BTC possible trap for sellers

Updated

The original price level, where the price has tested the strength of buyers or sellers is where the breakout has started , since there, the price has came down in straight line, so, a very possible scenario is those professional short sellers have to close the trades with buy orders, making the price go up, taking your stop losses and then continuing with the downtrend, from my perspective the scenario clearly bearish, but under the circumstances at the moment we should be very very careful with traps.

Trade active

S1 and S2 are potential entry levels in case of a trap, STOP LOSS AT 7150$ and profit at 6450$ - 6200$

Note

Limit order triggered and Stop Loss at 6950$, Take Profit at 6200$

Note

Stop on S2 entry intact for the moment and pending order at S1 at 6950$ same price as stop from S2, Stop Loss on S1 entry at 7140 and Take Profit at 6200$

Trade active

Trade Idea with S2 entry activated, Stop Loss at 7320$, not at 7150$, its been a mistake on previous post, and Take Profit at 6200$ that was correct.
Currently I maintain the S1 Pending Entry still valid, but do not expect to be triggered.

Trade active

At the moment, the plan for the trade is still valid, a detail that doesn't provide me too much security is about the little volatility, I would like to see some kind of impulsive candle to the downside in order to confirm that the price is not going to follow the B2 plan updated here.
In conclusion, both trading plans are bearish, there is still one pending order at 7050$ and the order open and running is open on 6951$

Trade active

Im updating it in order to you to see the context, amplifying the vision of the chart.

Note

Bigger picture on 3H also to give a much amplified view to detach yourself from your ego to try to predict where the price is going rather than trying to go with the price where is more probable.

Note

S2 Entry triggered and running, half position closed and the other half running with the Break Even placed. I am going to hold this position and not use the take profit, I will get out of this by doing trailing stop, this movement could give me more than the Take Profit. I will keep tracking the trade.

Trade active

I have made a mistake on the trade management, and the mistake is to place the break even, I should have maitained the stop loss placed above the breakout high, in order to be far enough from traps for sellers, because now this anybody nows, if it is a change in direction to go up, which i do not support as there is a wedge pattern broken with a clear 6200 level to be tested at least.
So, we are out, half position closed on the 2:1 Risk Reward and the other half position closed on Break Even.

I2MPCapital

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