BTC:USD 4 hour chart DAILY UPDATE (day 116)
Over the past 10 days I have been calling for a retest of the 12 period EMA on the daily chart. Any time that we get too far away from that moving average a reversion to the mean is very likely. I mentioned that it could come in the form of a sharp bounce, or it could come through days of consolidation. The latter option appears to be the preferred route.
The EMA has been acting as strong resistance over the past 4 days. I think that the bulls need to break through $6,750 before the weekend, otherwise another downturn is highly likely.
We just had a double top on the 4 hour chart which indicates that the next drawdown could be coming sooner rather than later.
We have been trading at a major resistance cluster over the past few days which will be coming to a head in the next 48 hours. The resistance is coming from the downtrend that started on 5/6 (red), established horizontal (white) as well as the EMA mentioned above.
Furthermore we are coming off a shooting star and a hanging man on the daily chart, both of which are good indications that this bounce is exhausted.
Over the past few days I have been suggesting building a short position and/or selling spot at the current levels of resistance. My strategy would be to start with 33% - 50% of your overall position right now and then add at $6,950 - $7,150. If we do not get to $6,950 then I would add the rest of your position upon a new swing low below $6,300. I am short ETH:USD and ETH:BTC. I believe that shorting alts vs USD has the greatest potential ROI and shorting alts vs BTC comes with the smallest amount of risk. My targets of $4,975 for BTC and $300 for ETH remain in tact and I plan on holding onto my short positions until then.
Thank you for your time! Have a question? Leave a comment! Click the follow so that you don't miss out on future updates and remember that smashing the like is good karma!
The EMA has been acting as strong resistance over the past 4 days. I think that the bulls need to break through $6,750 before the weekend, otherwise another downturn is highly likely.
We just had a double top on the 4 hour chart which indicates that the next drawdown could be coming sooner rather than later.
We have been trading at a major resistance cluster over the past few days which will be coming to a head in the next 48 hours. The resistance is coming from the downtrend that started on 5/6 (red), established horizontal (white) as well as the EMA mentioned above.
Furthermore we are coming off a shooting star and a hanging man on the daily chart, both of which are good indications that this bounce is exhausted.
Over the past few days I have been suggesting building a short position and/or selling spot at the current levels of resistance. My strategy would be to start with 33% - 50% of your overall position right now and then add at $6,950 - $7,150. If we do not get to $6,950 then I would add the rest of your position upon a new swing low below $6,300. I am short ETH:USD and ETH:BTC. I believe that shorting alts vs USD has the greatest potential ROI and shorting alts vs BTC comes with the smallest amount of risk. My targets of $4,975 for BTC and $300 for ETH remain in tact and I plan on holding onto my short positions until then.
Thank you for your time! Have a question? Leave a comment! Click the follow so that you don't miss out on future updates and remember that smashing the like is good karma!
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