Hello Traders! Here is my analysis for BTCUSD.
- First I want to say, I am currently sitting the market out for the time being. After incurring such massive losses on LUNA, I'm going to take a step back until BTC stabilizes or behaves in a more predictable manner. If BTC was to stabilize tomorrow I would happily start trading, but until then I'm playing it safe.
So how will I know when BTC stabilizes???
- One of the keys to success in trading is identifying predictable patterns, levels, formations, etc. in a chart.
- As of recent BTC has been incredibly unpredictable, which has made it very hard to accurately predict price movement.
- However... BTC may be trading within a parallel channel which would give us a better idea of the range in which BTC most likely will trade.
- If BTC can hold this channel, I will trade BTC between the channel.
- If the channel is broken, expect continuation to whichever direction price broke from.
Do Parallel Channels really work?
- Parallel channels are one of the most powerful formations in trading.
- Personally my primary intraday trading strategies are based off of channels and Fibs.
- If you remember, BTC was trading between a parallel channel from January to nearly May, and traded between the channel perfectly for those months which made trading BTC very predictable.
- As you can see price wicked below the channel last night but got a very nice bounce off that level. This is the first signal that BTC may be trading between the channel.
How Do We Know If The Channel Is Invalidated?
- It's very simple... If price breaks either below or above the channel (and does not immediately come back in) then the channel is broken.
So what's next for BTC?
***1st let me say, I will be keeping a very close eye on this channel. If it holds we will have an excellent channel to trade between.
- It's very hard to say at the moment, the events of the past couple days were unprecedented so that really makes it hard to predict what BTC will do.
- But... I would say the probabilities favor BTC staying in the range of $28.5K -
31K over the weekend.
- Truthfully BTC is overdue fro a large bounce and has been for days, but Crypto has a large dark cloud over it right now so undoubtedly that is affecting positive price movement.
How should you trade?
- If you are not an experienced trader I would be very cautious right now.
- Keep position sizes small 1-4% of portfolio, and be very selective with trades.
- Watch for BTC to go a few days without another large sell off, this will indicate some stabilization and may be a safer environment to trade.
Thanks everyone and best of luck trading. I apologize for not being that active this week, I got absolutely wrecked the other day and needed a break.
- First I want to say, I am currently sitting the market out for the time being. After incurring such massive losses on LUNA, I'm going to take a step back until BTC stabilizes or behaves in a more predictable manner. If BTC was to stabilize tomorrow I would happily start trading, but until then I'm playing it safe.
So how will I know when BTC stabilizes???
- One of the keys to success in trading is identifying predictable patterns, levels, formations, etc. in a chart.
- As of recent BTC has been incredibly unpredictable, which has made it very hard to accurately predict price movement.
- However... BTC may be trading within a parallel channel which would give us a better idea of the range in which BTC most likely will trade.
- If BTC can hold this channel, I will trade BTC between the channel.
- If the channel is broken, expect continuation to whichever direction price broke from.
Do Parallel Channels really work?
- Parallel channels are one of the most powerful formations in trading.
- Personally my primary intraday trading strategies are based off of channels and Fibs.
- If you remember, BTC was trading between a parallel channel from January to nearly May, and traded between the channel perfectly for those months which made trading BTC very predictable.
- As you can see price wicked below the channel last night but got a very nice bounce off that level. This is the first signal that BTC may be trading between the channel.
How Do We Know If The Channel Is Invalidated?
- It's very simple... If price breaks either below or above the channel (and does not immediately come back in) then the channel is broken.
So what's next for BTC?
***1st let me say, I will be keeping a very close eye on this channel. If it holds we will have an excellent channel to trade between.
- It's very hard to say at the moment, the events of the past couple days were unprecedented so that really makes it hard to predict what BTC will do.
- But... I would say the probabilities favor BTC staying in the range of $28.5K -
31K over the weekend.- Truthfully BTC is overdue fro a large bounce and has been for days, but Crypto has a large dark cloud over it right now so undoubtedly that is affecting positive price movement.
How should you trade?
- If you are not an experienced trader I would be very cautious right now.
- Keep position sizes small 1-4% of portfolio, and be very selective with trades.
- Watch for BTC to go a few days without another large sell off, this will indicate some stabilization and may be a safer environment to trade.
Thanks everyone and best of luck trading. I apologize for not being that active this week, I got absolutely wrecked the other day and needed a break.
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.
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.