Not going to lie, this $700 Billion fed quantitive easing program caught me off-guard yesterday night. We all saw a huge spike upwards in the price moments after the news have been released, breaking the key trendlines and going against our technical analysis elements, only to find out this effect would create a "fakeout". Personally, I think this is the same old market manipulation that comes into play only to wipe out the retail traders positions, but it's just a theory so let's not focus on that for now. Anyways, here we are again, back on track with our previous bearish sentiment.
Thing about trendlines is that the price usually has a tendency to retest it after the breakout, so this is where our technical analysis comes in. Currently, we are still looking for long term shorts with the virus around, nothing changed there, but we also want to see some short term bullish momentum to enter our shorts. The way I see it, this major ascending trendline, that was respected ever since the market started consolidating within the 1H candles, could act as another potential price action indicator for our next short position entries. In other words, let's see if we can retest it and bounce back.
Our key support area for the moment is around 4200, acting as a major zone of confluence where we saw the price action retest is multiple times looking back in the past. If we break out of it (which we most likely will due to the pandemic around), then we will have our eyes on the next key support area around the region of 3200.
This is NOT a financial advice, trade at your own risk!
Thing about trendlines is that the price usually has a tendency to retest it after the breakout, so this is where our technical analysis comes in. Currently, we are still looking for long term shorts with the virus around, nothing changed there, but we also want to see some short term bullish momentum to enter our shorts. The way I see it, this major ascending trendline, that was respected ever since the market started consolidating within the 1H candles, could act as another potential price action indicator for our next short position entries. In other words, let's see if we can retest it and bounce back.
Our key support area for the moment is around 4200, acting as a major zone of confluence where we saw the price action retest is multiple times looking back in the past. If we break out of it (which we most likely will due to the pandemic around), then we will have our eyes on the next key support area around the region of 3200.
This is NOT a financial advice, trade at your own risk!
Note
Keep in mind we have a minor resistance point (acting as previous support) at 4900. In order for out idea to come into play here, we firstly need to break through this resistance level. So keep an eye out for that!Note
We gave approached a crucial point for Bitcoin for the moment, lets see weather or not 4900 will hold or if it breaks through! Let's wait for the hourly candle to close and see where we go from thereNote
Very nice, small resistance zone broken. Approaching trendline, watch closely for price action!Note
Setting a short position on 5285 with a tight SL at 5442. We just commenced into the next 4H candle, let's see if it manages to move up closer to our trendline!Note
It might be too early to say, but if we fail to show any bullish signs within the next 3 hours then the 5200 would've been the perfect entry for the next shortsTrade active
Shorts active. Took entry at 5300. SL Just above the currently developed wick: 5458.5
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.