So yesterday we had a bear flag signified by the yellow wedge I have drawn out. I was playing bearish waiting for a position to short BTC as we were to break to the down side and continue the bear momentum which we did.
My Sell position was at $8880 and my re-entry positions was back lower at the $7900 mark as we headed into support. a pretty decent 10% move right there which I am pretty happy with.
Since we are so bearish right now a good practice is to wait for all the time frames to be oversold before trying to play the bounces. Bounces are not seeing very good V shape recoveries and most of them are drawn out and also leading to lower lows. I would be very cautious in playing these.
Here we can see that we finally got the 4 hour Bounce for BTC. I am not too happy with the bull volume on these bounces and this tells me that the bottom may not be in as we may not see much continuation to the upside. I will be watching the bounce to see if this can happen.
Otherwise I will be watching for a equilibrium pattern to form another bear flag and a possible short position to play again.
Remember this is just my opinion guys and not financial advice. Always do you own research and happy trading.
Fuble :)
