02/08/2018/15:00CET
We are at an important juncture in BTC again.
At press time we trade at 7530 usd
This is a rather steep drop from the 8200 usd levels we had just a few days ago.
But this drop was not unexpected, because in a previous post I had said that we had stretched away from the 21dma and that a retest of this indicator is quite possible.
In fact we have a confluence of indicators, namely the 21 and the 100dma at our current price levels.
Let's take a look at the daily chart to see where we are...
Even though bearish, and we have been bearish for so long it seems in the btc markets that this reflex is all too familiar, we have broken the 7800 support.
But on the upside we seem to be finding support on the far more important 21dma.
Also in the chart we see the old ascending channel that we are still in.
We have have broken the centerline, but this does not invalidate the channel. In fact a bounce down to the 7300 usd mark is still possible till the 8th August while remaining within this channel.
To take a look back at a trade idea I shared a few posts ago on 27/7, we had factored in this kind of a drop into our settings. (screenshot of post)
This trade idea is still in fact open.
Today and tomorrow's price action will be very decisive whether we get closed out of our trade or do we start riding it upward.
As I have said many times, we look for good risk/reward characteristics in designing our trades. No emotion, just TA.
But it's tough not to get excited!
What do you think guys?
Leave a comment.