Howdy traders, let's have a look at Bitcoin.
Bitcoin.
The bulls have failed to keep the momentum going after a spike in price triggered by panic hedging from Tether into Bitcoin.
We're back to grinding at support as the market is once again trying to absorb mounting shorts pressure.
As you can see in the chart above, the shorts are creeping back up into what I call the "short squeeze danger zone" which roughly represents the key level of $6000 but in reverse.
So far, the bulls have been able to reject this bearish pressure on multiple occasions, albeit thanks to very artificial means of pumping the price...
... since organic adoption is still very anemic as shown on google trends:
If $6000 were to break, this would certainly trigger a high momentum "flash" dump down to $5000 which is a significant level in terms of its volume profile.
Take a look:
Such dump would likely triggered an immediate bounce and would constitute a great entry for a long.
On the bull side, the pattern that's been forming on Bitcoin during the last few months will look eerily familiar if you were around in 2015 (I wasn't but that's what price charts are for):
Bitcoin Market in 2015:
Bitcoin Market in 2018:
Which tells me that it's likely we're here in terms of the 2015 market...
...and Bitcoin is coiling for a move up.
Strategy.
- If you're in the market as an investor/long term hodler, now is a perfectly good time to start scaling in. Price has retraced over 60% from the top and mainstream awareness is at its lowest since April 2017. Just make sure to keep some firepower in case we flash dump to $5000.
- If you're in the market as a trader now is not a good time for neither leveraged long or short trade since we're grinding at resistance and Bitcoin is in its "meat grinder phase".
Until then,
FØx.
This content is for informational purposes only and does not constitute financial advice.
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by FØx
