14/09/2018/09:00CET
Feels like groundhog day! we've been here before I think.
At press time #btc is trading at the 6546 level and when looking at the hourly we seem to have leveled off a little in the last hours. We have recovered 7% from the recent lows so for those that bought the dip, they have a nice little profit at the moment.
Alts have moved more aggressively with Ether rebounding 26% from a low of 167usd to be trading at 212usd at press time. Other alts have followed suit.
Seems everyone is back on the bandwagon again in crypto world, but I am starting to think this is going to be routed again. My suspicion that the hapless days traders and small time investors are back on the roller coaster for another round to the barbers to get fleeced.
This game is getting boring and expensive and it is time to try and play the players.
If I were a whale and planned to dump and pump the market, where in the chart would I do it?
Looks to me that 6800 is a nice place to start.
So what can us little fish do about this?
We could layer in sell orders as we get up to 6800 starting with a close above the 21 dema at 6607.
I would keep selling into any rally that heads to the wedge boundary up in the low 7k levels.
The goal would be to liquidate in anticipation of a correction back to the lower 6k levels. I think it is a safe bet to say we have some stiff support under bitcoin at this level. Join this support and buy in again.
Though you should always challenge your assumptions and have a plan !
If btc breaks out of the low 7k level and rallies further, let it run and decisively break the 7500-7700 levels where it would hit the 200dma and our resistance at 7700. Buy in again at low 8k levels.
If btc breaks down past 6k, then wait till hit finds a floor. This is much harder to predict since the market has been so focused on 6k. Technically there are support lines all over the place: 5800, 5500, 4900... Take your pick. They are old levels and who knows how the market will react at them in 2018.
As always guys, leave comments, have fun and trade safe.