Bitcoin Technical Analysis: PRICE DROPS AND LONGS STACK
In my last bitcoin update, it looked like price was getting ready to move. We discussed the possibility of a bull trap. That’s exactly what happened. Price initially broke up and out of the wedge it was consolidating in, hit the top of the order block and reversed course. It’s now sitting at around $5,000. This is a very relevant psychological support. If $5,000 is decisively broken, I believe bitcoin will quickly drop to at least $4,600.
Zooming out on the weekly chart, we can see $4,600-$4,100 is a fairly strong area of support.
What I find interesting is...market makers were driving price down looking to liquidate long positions (stop hunt). THEY FAILED. Long positions not only held strong, they're actually stacking.
Short positions are also stacking.
In today’s video analysis I discuss, where price may be heading next, market psychology, buying strategy and so much more. I hope you find it helpful.
Video Analysis:
If you don’t see the above video, navigate to TIMM (https://mentormarket.io/profile/@workin2005) or Steemit in order to watch.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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by Workin2005
Nice call to the downside.
Thanks Rolland. Wish I was wrong.
are we not in capitulation mode right now ?
I think it started when prices dropped below $6,000.
hmm, im kind of new, I think i understand "long position" but how can you "short" bitcoin? could you give me an example? :)
You first have to find an exchange that allows users to short sell. In crypto there's a few, but I believe BitMix and Bitfinex are the 2 largest.
Short selling is where an investor sells an asset (in this case, Bitcoin) at current market value by borrowing the asset to sell from an exchange. At a later date the investor must buy back the asset at current market price.
In other words, when you take a short position, you're betting the asset will drop in value. If it does, you'll be buying it back at a much lower price than you sold it for...and keeping the difference. Make since?
Thanks!
It makes sense, but I didn't know it was possible to do in Crypto :P