BTC - Great entries come with greater risk
Updated
BTC has been in a steady decline past few days. We see buying pressure very similar to march 2020. Is this our local bottom or are we at complacency? Either way, you will be having quite a risky entry as the direct R/R ratios in short term are not that great. Personally always looking for 1:3 for TP1, and at least 1 or two more potentials for TP2. Right now TP1 seems difficult to reach. It's a big tight range where we can expect a lot of chop, 1-3 minute bars with 1k price swings. However, if it is the local bottom and we are actually able to break the first resistance (TP1), then you got an amazing entry longterm.
Seeing how the OBV has not been able to touch it's resistance yet, I am more inclined to some downside. Especially as BTC keeps tipping the ascending supportline. I've seen too many people recently calling to buy this dip. To the point that I felt euphoric in our recent drop. That's not a good sign.
Seeing how the OBV has not been able to touch it's resistance yet, I am more inclined to some downside. Especially as BTC keeps tipping the ascending supportline. I've seen too many people recently calling to buy this dip. To the point that I felt euphoric in our recent drop. That's not a good sign.
Comment
Not sure how to edit the description. Rewrote with better wording below.BTC has been in a steady decline past few days. We are seeing buying pressure very similar to that of March 2020. Is this our local bottom or are we at complacency? Either way, you will be having quite risky entries both long/short side as the direct R/R ratios in short term are not that great. Personally I always look for 1:3 for TP1, and at least one or two more potentials for TP2. Right now long TP1(46.5-47k) seems difficult to reach. Currently we are in a big but tight range where we can expect a lot of chop and volatility, 1-3 minute bars with 1k price swings. However, this was the local bottom and we are actually able to break the first resistance (TP1), then you got an amazing entry longterm.
Seeing how the OBV has not been able to touch it's resistance yet, I am more inclined to some downside. Especially as BTC keeps tipping the ascending supportline. I've seen too many people recently calling to buy this dip. To the point that I felt euphoric in our recent drop. That's not a good sign.
Additionally, the current price and the start of the ascending supportline (33k) has no clear support, meaning it is easier to reach TP1. If we do drop to that level, I bet on another cascade of liquidations leading to final capitalization.
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