Here were are again my crypto heads! Bitcoin has made a push higher and run out of steem at the 6,800 area. So let's figure out what we should be looking for as price battles this area for the 150th time.
The Battle of Evermore
Looking at the chart below you can see we got a strong move on solid volume the previous four days taking us right to the 6,800 area.
Given that the area was our initial upside price target (and a resistance level) it makes sense we did not blast on through...
What Now?
Well, it is pretty simple. We wait for price action to give us a signal.
We know the two things that can happen here:
- Price breaks through 6,800 and closes above it
- Price fails to close above 6,800 and turns lower
You are welcome to anticipate, but there is no real good risk/reward trade here except on the down (short) side as you can use a close above 6,800 as a stop loss and your down side potential is atleast 6,500 if not lower. I'm sitting on the sidelines rather than gamble on a short right now.
If we were to pull back off 6,800 then I would like to see us hold 6,500 as that would create a higher low and be par with the last little top we had.
So in the end we are all rooting for one thing. A break and price close above 6,800 followed by a second day/candle close above 6,800.
This would open up price action to have upside potential of 7,400.
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Disclaimer: All info in this post is my opinion and for informational purposes only
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Disclaimer: All info in this post is my opinion and for informational purposes only
Thanks for the analysis as it makes sense. I've been considering what to do and can't decide if I should old or sell some so I have purchasing power for later. I hate being 100% invested.
Agreed, I try to always keep some cash to the sideline for buying opps. I did it during the whole run up and then used free cash on the way down. Don't have any left and am 100% invested as we had a lot of "good buying opportunities" past 6 months lol.
Hi @scaredycatguide the market has been bearish for a long time but we are all anticipating bull runs around late November, by the way, there is this trading platform trade.io that is offering zero commission till 1st Oct you can check it out, it is splendid I can say.
Thanks for the heads up.
Solid trading strategy for the short.
I have a similar idea below.
Yep. In the end a solid risk-reward ratio is what counts most
Looks like patience is key for now.
Agree, just giving markets cash any were between $6k-$7k...but that's because I don't know how to trade range.
It is quite the battle at the moment, I am confident later next week we will see >7000. I think there was enough volume last week to push higher. Fingers crossed, let's see.
I just want to see a new higher high. I can’t get excited at the price action until we do.
I slapped some fibs on the chart today and the fact it’s struggling here, doesn’t really inspire confidence. If this is a new lower high. It could be good night 6k.
Damn, I didn’t mean to because I’m long, but I’m actually making a really bearish case here haha.
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