I posted a trade on the break of 2500 which it all three targets (3600 being the third) but liked the momentum and mentioned to our members , if you are in it, let T3 ride, may push 4500. Now however, I am not liking what I am seeing, so safe to say if I was in this trade, I would be getting out.
I’m sure we were not the only ones that took the break of 2500. There are a lot of longs from the 2500 area up, so we start to see some selling pressure here, reasonable for them to be blowing out positions, locking in profits, and like Bitcoin those buying the highs blow out theirs, market sentiment wanes, which leads to buyers holding back and guess what?
Markets top when they run out of buyers.
I put up there several Fibb retraces from various time frames just as a reference. Support is found initially at 3200 but if this level is taken out, my thoughts are we pullback into the 2000-2500 area, that is where I would consider buying.
In the near term 3600 triggers a short, and a reasonable target is 3200, but we do not short this market, too volatile and exchanges are too risky IMO.
The market is throwing out red and yellow flags everywhere. Does this result in a Bitcoin broader pullback I have been anticipating since March or does it fake out and push to new highs? I don’t know, neither does anyone else, but probabilities favor a swing lower here and I would not be buying, I would be looking to trim out some risk, closing out trades, especially in the more volatile Alt coin and crap coin market.
In closing this is truly a Moment of Truth for the market, and if it plays out the way I believe it does, there is going to be a lot of buyer’s remorse!!
You won’t get the closing line unless you read all 4 parts.