BTC Update!
Sometimes you just have to sit back and enjoy textbook TA. And then laugh when you see articles or comments of what happened? Why are we moving up or down?
Understanding basic TA gives you such an extreme advantage in my opinion on knowing when to be in or out of positions. Same thing as started from 5-6 days ago on charts. $6000-6400 was a no trade zone for myself. $6400 was first bull entry to watch for as that was our lower resistance and the more conservative entry was $6800 as that was our heavy resistance area. Did I expect us to break through all the resistance points without consolidation first? Absolutely not. But knowing where they are and where to place entries is so critical in this game as these moves happen so quickly. While one may not expect certain things to happen, always being prepared and knowing what to do if it does happen gives the trader the advantage over those reacting well after the move has started. So now what?
Bulls are happy, that's what. Traders are ecstatic as it's a massive move for many of us watching the charts. So chart wise -
First chart is just a 15 min chart showing both of these bull moves. Last Thursday I outlined $6390-6410 as area to watch and then $6800 as next area. Our massive bull breaks came at these areas, nearly to the penny.
Daily chart - so lets shift focus to daily on what to expect. $6800 was a huge win for the bulls as it gave so much clear area above it with next resistance I am watching being $7,777 and potentially our 100 day MA but not too worried about that. Then we will have $8k psychological and $8600 above that. We got our inverse head and shoulders to play out and more importantly we got the higher low and higher high on the daily chart. This was the FIRST sign I wanted to personally see to start to shift market momentum.
Weekly - have our 50 week MA around $8200-8300 currently and will fully expect a lower high as that is way up at $9948 and would be the healthiest way to start this trend change on weekly chart.
Bulls are now extremely comfortable in positions and can ride loose stop losses if they want to. Bulls can comfortably watch for some consolidation here this week ideally as RSI's still need to cool off on many of the time frames but all would be perfectly healthy. Bulls also are riding on ETF hope in a few weeks so will not shake out of positions nearly as easily.
Has the bear market ended? Not so fast in my opinion. Bulls still have loads of work to do and a couple of days or even weeks of green does not mean market is bullish (as we have seen already this year). A weekly lower high, higher low and then higher high and I'll likely be bullish.
Personally - playing loose stops on my positions and IF bulls can stay in control the next week or two, I will then start to tighten up my stop loss as August 10th approaches (assuming an ETF decision will come then as I will want to be prepared for a sell off if denied).
Happy trading, investing, hodling and I know I've been messaging with loads of you lately regarding these resistance areas so congrats to all who played the charts!
Just My 2 Sats!
