Bitcoin channelling tight today
Hello Traders
over the course of the day Bitcoin has more or less been channelling around in a rather tight range - just after we were happy that volatility is back at it again. Oh well...sad story.
Anyways, BTC is throwing up mixed signals currently. After breaking up yesterday BTC is currently consolidating in what might appear to be a Wyckoff reaccumulation phase. Interesting is, that stops in both directions has been run, this is a huge indicator that smart money is shaking out weak hands - weak hands are bad for building a support level, therefore smart money wants it out before it starts rallying up and down.
In this accumulation, volume has steadily been declining as traders are stepping to the side and wait for momentum to trade into - often that is a mistake and leads to fomo market orders - what we want is taking our position with the smart money.
Since it was pushed lower more than higher I expect an upmove to follow this consolidation. The crossing EMA's 20 & 50 support this theory.
On the other hand, a head and shoulders pattern might be in play that could send us back 7800 once the neckline at 8658 breaks.
I'm still in my long position from 8700 and added more at it around 9100. Stop loss is set at 9050 in profits, and a hedge from 9300 is open in case this breaks down.
Good luck trading everyone!
- This is no financial advice -
over the course of the day Bitcoin has more or less been channelling around in a rather tight range - just after we were happy that volatility is back at it again. Oh well...sad story.
Anyways, BTC is throwing up mixed signals currently. After breaking up yesterday BTC is currently consolidating in what might appear to be a Wyckoff reaccumulation phase. Interesting is, that stops in both directions has been run, this is a huge indicator that smart money is shaking out weak hands - weak hands are bad for building a support level, therefore smart money wants it out before it starts rallying up and down.
In this accumulation, volume has steadily been declining as traders are stepping to the side and wait for momentum to trade into - often that is a mistake and leads to fomo market orders - what we want is taking our position with the smart money.
Since it was pushed lower more than higher I expect an upmove to follow this consolidation. The crossing EMA's 20 & 50 support this theory.
On the other hand, a head and shoulders pattern might be in play that could send us back 7800 once the neckline at 8658 breaks.
I'm still in my long position from 8700 and added more at it around 9100. Stop loss is set at 9050 in profits, and a hedge from 9300 is open in case this breaks down.
Good luck trading everyone!
- This is no financial advice -
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