BTC:USD 4 hour chart DAILY UPDATE (day 119)

sawcruhteez (55)in #bitcoin • 7 years ago

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Disclaimer: This is not meant as financial advice and is for entertainment purposes only.

Yesterday we were waiting on the breakdown of support which has held us up since the beginning of February. I had an order set to open a short on BTC as soon as a new low was created below $5,820.

My order triggered a few hours ago at $5,819 and the price quickly reversed from there. We are currently re testing $6,200 for resistance and I am viewing it as a great opportunity to add to my short.

This feels like the last short squeeze before the downward trajectory resumes. If it breaks through $6,300 then I will be looking to add more to my position at $6,424. That is where a cluster of resistance will be waiting from the trendline (red dotted), 12 period EMA on the daily chart and that is where prior horizontal support is expected to turn into resistance.

Today is Sunday and that means the weekly candle only has a few hours left before closing. It is currently taking the shape of a bearish spinning top. The TD Sequential shows a 6, which leaves room left for three weeks of downside before a 1-4 week correction. The Ichimoku Cloud recently had a kumo twist which followed the TK Cross. The next confirmation would be for the price to trade below the cloud.

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The only thing that worries me about my short positions is the dragonfly doji which is currently forming on the daily chart above established support. If the current candle closes above $6,000 then that would be a strong indication of a short term reversal and something to keep a close eye on.

dragonfly .png

I am still using $6,851 as my stop loss and that is based on the most recent Bill Williams Fractal.

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Thank you for your time! Have a question? Leave a comment! Smash the follow so that you don’t miss out on future updates and remember that clicking the like is good karma!

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