We have been shorting bitcoin since July 1st per one of the linked charts posted here on tradingview. Title "Time to short btc?"
With that said price has been down trending for 8 weeks, seen a massive drop, hit high time frame support and consolidating at our current level.
This a 4hr chart and looking at the wave trend rsi oscillators we can see the nice curvature rotating to the upside on both the 4hr and the daily.
Personally I still forsee lower prices for btc BUT as momentum rolls over to the upside some kind of a relief rally short squeeze should be expected. Time vs price is king as it provides us the momentum of the price action. As price begins to drop at a slower pace and trend sideways, along with oversold/divergent momentum waves on the oscillators some kind of move to the upside is in order soon.
The question is will it happen at our current level or after another quick drop and as momentum cycles back to the upside how much price rise can it really bring.
Looking at the upper price range we have not seen a serious retest of the 28-28500 support area we held for a month. We have also not yet seen a retest of the macro months long uptrend we broke in our last big drop.
Current trading plan is to CAUTIOUSLY enter to the long side with the understanding another 5% drop could come first and at any moment. For upward price movement there are two area above that have not been well tested.
First is approximately 5% above in the 26700-27k area where we have a small fair value gap when considering just the close prices that is also aligning with the local golden pocket. The second is approximately 10% above in the 28-28500 range where we have our previous support level that has only seen one quick news related retest.
Trade Well.....
With that said price has been down trending for 8 weeks, seen a massive drop, hit high time frame support and consolidating at our current level.
This a 4hr chart and looking at the wave trend rsi oscillators we can see the nice curvature rotating to the upside on both the 4hr and the daily.
Personally I still forsee lower prices for btc BUT as momentum rolls over to the upside some kind of a relief rally short squeeze should be expected. Time vs price is king as it provides us the momentum of the price action. As price begins to drop at a slower pace and trend sideways, along with oversold/divergent momentum waves on the oscillators some kind of move to the upside is in order soon.
The question is will it happen at our current level or after another quick drop and as momentum cycles back to the upside how much price rise can it really bring.
Looking at the upper price range we have not seen a serious retest of the 28-28500 support area we held for a month. We have also not yet seen a retest of the macro months long uptrend we broke in our last big drop.
Current trading plan is to CAUTIOUSLY enter to the long side with the understanding another 5% drop could come first and at any moment. For upward price movement there are two area above that have not been well tested.
First is approximately 5% above in the 26700-27k area where we have a small fair value gap when considering just the close prices that is also aligning with the local golden pocket. The second is approximately 10% above in the 28-28500 range where we have our previous support level that has only seen one quick news related retest.
Trade Well.....
