BTC - Worst bounce from Supposed Bottom!
Updated
What's happening?
This bounce and weak volume has made me fairly certain that 3200 is not the bottom.
After a nice SHORT this morning, we have tested the bottom of the falling wedge I shared late last night.
Volume is still not good. One would have hoped for volume to pick up after that bounce from under 3.2k. But nope! Nothing! Too weak.
Trade Patterns
These patterns, they will not always be accurate because there is always a chance of your trend lines being a little off here and there.
Which is why I sometimes, draw the same pattern multiple times and as many different ways as possible.
So, we have 3 Falling Wedges here.
Falling Wedge 1 -> Drawn with a bullish perspective. If this is THE WEDGE, we won't see 2.9k yet. After breaking out from this wedge, we can jump to 3540 resistance.
Falling Wedge 2 -> Drawn from body of the candles. This wedge could take us to 3k before breaking out to 3.5-3.8k (depending upon the buy volume).
Falling Wedge 3 -> Drawn from the wicks. This wedge could take us just under 3k and call it a test of the bottom of the wedge and our 2956 support. I'm hoping breakout from this wedge will be "The Break-out"/"The relief rally" that everyone's been talking about since 5k.
Now, all this depends on 2.9-3k support. It has to hold for these wedges to work out. Red Arrows depict break out from Falling Wedge 1. Blue Arrows depict breakout from Falling Wedge 2.
How am I trading this?
I've closed my SHORT from this morning in massive profits. I'm going to keep an eye at the bottom of Wedge 1 for a little longer. If we creeps above 3300, I'll wait for a break out from this wedge and make a short term counter trend LONG trade.
If we break down from the wedge, I'll open a small SHORT. Coz if 2.9-3k is the bottom, it's not wise to hold a gigantic SHORT position so close to it.
I'll be closing majority of my SHORT between 2.9k and 3.1k.Let the rest run with a Stop Loss around 3250.
As I've been saying for a while now, breaking 2.9k will take us to 1.8k
I personally don't like the sound of that.
What are my indicators saying?
FOMO 1hr -> Green
FOMO 2hr -> Just turned Green
FOMO 4hr -> Still Red
FOMO Daily -> Still Green for last 3 days.
FOMO Momentum Scalper -> 4hr timeframe is showing increasing sell momentum
So, the indicators are giving mixed signals.
Which is why not trading right now wouldn't be a bad idea after all.
This bounce and weak volume has made me fairly certain that 3200 is not the bottom.
After a nice SHORT this morning, we have tested the bottom of the falling wedge I shared late last night.
Volume is still not good. One would have hoped for volume to pick up after that bounce from under 3.2k. But nope! Nothing! Too weak.
Trade Patterns
These patterns, they will not always be accurate because there is always a chance of your trend lines being a little off here and there.
Which is why I sometimes, draw the same pattern multiple times and as many different ways as possible.
So, we have 3 Falling Wedges here.
Falling Wedge 1 -> Drawn with a bullish perspective. If this is THE WEDGE, we won't see 2.9k yet. After breaking out from this wedge, we can jump to 3540 resistance.
Falling Wedge 2 -> Drawn from body of the candles. This wedge could take us to 3k before breaking out to 3.5-3.8k (depending upon the buy volume).
Falling Wedge 3 -> Drawn from the wicks. This wedge could take us just under 3k and call it a test of the bottom of the wedge and our 2956 support. I'm hoping breakout from this wedge will be "The Break-out"/"The relief rally" that everyone's been talking about since 5k.
Now, all this depends on 2.9-3k support. It has to hold for these wedges to work out. Red Arrows depict break out from Falling Wedge 1. Blue Arrows depict breakout from Falling Wedge 2.
How am I trading this?
I've closed my SHORT from this morning in massive profits. I'm going to keep an eye at the bottom of Wedge 1 for a little longer. If we creeps above 3300, I'll wait for a break out from this wedge and make a short term counter trend LONG trade.
If we break down from the wedge, I'll open a small SHORT. Coz if 2.9-3k is the bottom, it's not wise to hold a gigantic SHORT position so close to it.
I'll be closing majority of my SHORT between 2.9k and 3.1k.Let the rest run with a Stop Loss around 3250.
As I've been saying for a while now, breaking 2.9k will take us to 1.8k
I personally don't like the sound of that.
What are my indicators saying?
FOMO 1hr -> Green
FOMO 2hr -> Just turned Green
FOMO 4hr -> Still Red
FOMO Daily -> Still Green for last 3 days.
FOMO Momentum Scalper -> 4hr timeframe is showing increasing sell momentum
So, the indicators are giving mixed signals.
Which is why not trading right now wouldn't be a bad idea after all.
Note
Should be heading down soon.Trade active
Broke down from Falling Wedge 1I got into a tiny SHORT at 3187
Taken some profits.
But looking to close it around 3k
Note
Falling Wedge 2's bottom line is around 3100. Breaking that would invalidate falling wedge 2Falling Wedge 3's botom is around 3050
Note
SL at break even got hit for my scalp.This is why it's not wise to SHORT near the bottom. Hence, not trading sometimes is the better option.
3 fake outs from bottom of Falling Wedge 1.
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