Midnight Thoughts...
Updated
For quiet some time, I have been looking for short opportunity on BINANCE:BTCUSDT. I am aware that the Bears are going to catch everyone by surprise.
For sometime, even before my Long trade 5 days ago, I have been looking at this scenario on BTC and wondering what if, the upward correction did not start 5 days ago, rather it started quiet a while ago as an ABC Flat shown in the chart above.
The recent price action developing on BTC has indicated me that the possibility of this scenario is highly likely. Since We do ought to go down eventually. But the current scenario is perfect for Bears to inflict maximum damage to Bulls, as right now, everyone is thinking that BTC broke out of falling wedge, without much retracement. Average traders are furious that they missed the bull wave and most will be buying at upper prices making it ideal conditions for bears to trap them by making a reversal from this point. That is how I would have thought of doing if I were a market maker.
In case this Bearish scenario does not play out, the other scenario would be that we are currently in Wave A of correction and this correction will go on for 2-3 weeks, in which case I will wait for price action to develop.
I have Booked my long from the trade I took at the Bottom while keeping partial position open as a hedge. We shall see how the market moves forward.
For sometime, even before my Long trade 5 days ago, I have been looking at this scenario on BTC and wondering what if, the upward correction did not start 5 days ago, rather it started quiet a while ago as an ABC Flat shown in the chart above.
The recent price action developing on BTC has indicated me that the possibility of this scenario is highly likely. Since We do ought to go down eventually. But the current scenario is perfect for Bears to inflict maximum damage to Bulls, as right now, everyone is thinking that BTC broke out of falling wedge, without much retracement. Average traders are furious that they missed the bull wave and most will be buying at upper prices making it ideal conditions for bears to trap them by making a reversal from this point. That is how I would have thought of doing if I were a market maker.
In case this Bearish scenario does not play out, the other scenario would be that we are currently in Wave A of correction and this correction will go on for 2-3 weeks, in which case I will wait for price action to develop.
I have Booked my long from the trade I took at the Bottom while keeping partial position open as a hedge. We shall see how the market moves forward.
Note
Price did not reverse from that 161.8% level of Wave A and tore up which later on I realized was because not much short had been liquidated there.Although yesterday, some Million $ shorts were liquidated and price is currently at 90% retracement level and 261.8% level of Wave A as shown in the chart below. At the moment, retailers are most likely looking at the possible Cup and Handle breakout which can be seen on weekly chart. and expecting Bull market. But that is not the case for me at least for time being.
As long as we do not make a new HH above 31k, I am still bearish on BTC and have entered in a Short Position with SL just above the 31k.
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