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Well here we go again, no fear with balls of steal, this drop I consider was very drastic and I wake up after a nap just on time to take a long position on Bitcoin, just as last night I was shutting down the computer after watching a movie and decided to check the chart and notice my long on Solana was slightly on green so I move my stop loss just high enough to pay the exchange fees because it was possible it would for the market to take another dive before start going up.
Bitcoin 1D
Its very funny how we humans work, how on this range people are starting to say its going back down to $50k or less, the chart is not so easy to tell whats going to do right now since the ADX is almost flat and the drop was drastically, all those bullish saying we were going to new ATH got destroy in the last two days and those in fear taking longs or selling at this level will most likely get destroy too, despite the news the market just love to play with our feelings.
If we take out the candles all the price has done is a range but as I mention its very possible that Bitcoin can do a temporary lower high and not necessarily go to the bottom of this range again, I think it wont and even though the daily still is in that negative slope of the SZQ indicator it DOES NOT mean the price MUST go down, it would be up to how much volume the price picks up and the ADX could take positive direction and the price would start to move with force, pick up volume and up only from here. Although its early for this, at least need to wait what happens until next Monday.
Bitcoin 4Hr
At the moment of making this post I have taken another long position, my previous long got stop out on the drastic drop, I was expecting Bitcoin to go down to $60k or a bit lower, 10 days ago (https://inleo.io/@ftrekt/bitcoin-about-to-fk-dreams-h5m?referral=ftrekt), well 8 at the moment the price decided to drop, all this based on the 1D chart. Now after the drop I have taken a long position at $61210.21 with a target of $63k.
On the 4hr chart the price will most likely go up to $63k, the reason for my target is because
1- $63k is the next level on the volume profile
2- If we take out the candles and just have lines as price action $63k is the resistance
3- SQZ indicator turn positive
4- ADX will take a negative direction (not at the moment of this post)
5- Low volume compare to the volume of the drop
This combination of indicators gives the me the idea, it does not tell me the future, just give me an idea that there is a higher chance the price will go up to $63k and once there we will have to see HOW it gets there, if it picks up volume and its bull run time because I’m expecting something like this to happen soon, the moment price just skyrocket and leaves everyone behind, or if the price lacks volume going up very slow, sluggish and then the 1D chart finish its work, price keeps going down and this is just a bounce.
Right now my long position is already on the green and I hope tomorrow when I wake up Bitcoin is at $62k so I can happily move my stop loss a bit higher than my entry so if it does not go my way at least I dont loose any money (paper trading here), if I wake up and this is then case I would also cancel my take profit and let the price do its thing because its possible for the price to go higher than $63k but same way as it got to $66k, slow AF!! just to liquidate shorts to then go back down, but we are not there yet and we have to see how the price gets there.
Right now I feel I have to hone more my entry, I'm starting to feel I can take the correct direction of the market although my entry is not that good and the reason why I got stop out for $275 for then the price to give me the reason, I have to use stop loss orders specially now that I'm learning and is also a good practice, my last three operations got stop out and then move into the direction I had in mind, lucky me this time I was awake and got to enter my long at a great moment.