Bulls Better PushOver the recent days BTC has recovered nicely since our last dip to under $3,000. Many people believe that the bear trend is over, and the next stop is an ATH. However, I'm not entirely convinced yet.
I believe that this market has been driven primarily by emotions the last couple days. Hence the massive selloff to under $3000, and then the instant panic buyback to over $4000. This makes the market very unstable, and this is where the massive volatility is coming from.
That being said, instability COULD send us to an ATH, however, it could just as easily send us the other direction.
Now, if I were to pick a side, I would say instability indicates something unhealthy, and unhealthy markets lead to bear trends.
My Analysis:
As you can see in the chart above we have yet to cross the major downward trendline, which means that I will remain bearish UNTIL that line is broken.
There is also a possible Gartley Formation, which is an additional indication that we could be seeing another sell off.
My Plan(s) of Action:
Option 1: I plan to wait for BTC to once again test the downward trendline, where I will wait for a candlstick sign of reversal, and then trgger a short.
Option 2: There has already been a sign of divergence at the possible top location, so IF BTC fails to reach my Ideal Entry I will wait for a break outside of the triangle to trigger my short.
There is a possibility that we will find support around the $3880 mark so depending on when/if we break, I may wait for a cross of that line for confirmation of reversal.
Option 3: IF BTC closes a candle above the downward trendline I will cancel all short orders and likely place a long. This indicate that BTC has additional room for upward movement.
Current targets are all listed above.
Regardless of direction I will post additional target levels as soon as we confirmation of direction.
Extended Target of $2665; this target becomes active IF we fall out of the pennant. Which this marks the finish line for an ABCD pattern which just happens to rest on a longterm trendline.
Coincidence? Time will tell.
I do not think this is highly likely atm, I am just stating a possibility.
I plan to take profit and wait for re-entry at all targets posted above.
This trade could go either way, so I advise to trade with caution, and to always wait on confrimation.
I wish you all good luck!
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal.
