10/08/2018/10:20CET
Is this the last fluch for the crypto space?
"Difficult to see. Always in motion is the future.." Yoda
I´m back from my enduro ride and its time to dive into market status.
While I was away, the #crypto markets had another flush with #btc retesting the 6k level.
We bottomed out at 6128 on wednesday with a 4.5% plunge in 1 hour. Again these savage buy or sell side spikes.
At press time we trade at the 6450 handle after clawing back from the abyss.
In my last post I talked about the retest of 7050 which we did get, but the bears overwhelmed the market afterwards and btc retested the 6k support line which is now being confirmed again as very important market structure for BTC.
I make note of this 7050 level because it reassures us of this rs line. It is a reconfirmation that the market respects this level. This is an important aspect in technical analysis. We often take guesses as to where these rs lines may be. When we make a call and the market confirms it, we get confidence that we are on the right track with our analysis. This is one of the big reasons I do this blog. I know myself that I will bias my predictions retroactively if I do not set them down in a public, and as such an immutable way. I hold my own feet to the fire of public opinion in a kind of masochistic manner.
So it is you guys I count on to call me out if I screw up. So if you read this blog of mine, I expect you to be critical thinkers and not just passive tourists.
So on the way up from here, I think we can expect, with more certainty than before, that this level (7050) will be a rut in the road which may hold up btc's ascent upwards.
Let's take a look at the charts...
We can see here the pause in the selloff at our 7050 rs line, but it did not hold,
We fell down to the 6128 handle but then found some strong bids that have held us up.
Nice to see that the support at 6k kicked in before we hit that mark. i.e. we did not overshoot it like we did at the end of June.
Though it was not the base case in most TA that I have seen from other traders, there was talk of another flush in the cards. I guess we could say this is it.
I am on the side lines at the moment with my swing trade capital after having sold out after btc dropped below the 21dema (~7500 usd). Currently the 21dema is at 7112 usd and I expect it to drop below a little lower before it swings back. So according to my strategy, I will buy in again when we cross this indicator upwards.
As any of you who follow me know, I am working on a bear market trading strategy that would have doubled our BTC holdings since the height of the market had we implemented it back then. See these 2 posts for more details on this strategy: post 1 and post 2
Stand by for another post shortly where I will add some more info about this strategy guys. So for this post, I will sign out.
And as always leave comments, have fun and trade safe.