Not Out of the Woods Yet
Over the last couple days BTC has made a massive correction of up to $1000 on some exchanges. Browsing through my feed I have noticed a couple post of people calling the bottom, and so I feel obbligated to share with you my IF/THEN theory.
Based on the chart above, BTC is on it's way to the $4440 mark. This is a possible turning point for BTC .
Now, IF BTC continues to push through the the green trendline shown, it is likely that we will push farther to the $4500, $4600, and possibly the previous high.
However I do not think this is likely.
Here's why:
- The one day chart on BTC still remains very bearish . Even with the 4 hr 0.06% MACD nearing its pivot .
- The ADX is very weak, meaning this short-term trend up could reverse at anytime.
- Even though the RSI is moving up with the price, it is showing very strong sign of divergence, indicating that this trend may continue down.
- That downward trendline will hold a massive amount of reistance, which will likely cause all of the above to be proven correct.
So with all of the reasons above, I am going to leave of option of this going bullish open, but I am calling a short.
My plan of action:
IF BTC creates a lower low, I will wait until we pass back into the red zone to trigger my short. This will likely send us back down into the $3000's.
IF BTC pushes through the green trendline I will place a long order with my first target being $4500, then following the ones listed above.
Regardless of entry, I will post my additional profit levels and stops in the comments below.
Thanks again for reading!
I wish you all good luck!
source https://www.tradingview.com/chart/BTCUSD/bxQCRVl4-Not-Out-of-the-Woods-Yet/?popup=true