Currently, i don’t have any holdings in BTC. But as we all know, BTC is the industry leader and whatever BTC does most the altcoins follow in a similar fashion.
Looking at the weekly chart BTC halted right near the previous all-time highs. Obviously no doubt a place where many people will be locking in profits and short-sellers come in to take advantage of the pullback.
I’m a 16 year veteran day trader in the stock market and shorting has always been my specialty. And while I’m a long term bull on BTC and crypto, It’s hard to ignore the fact that BTC just ripped a huge parabolic move into the previous all-time highs.
And to not consider a high probability of a short term pullback from here before we continue would be irresponsible. It is a fact that there is a 100% probability of a big pullback when an asset goes parabolic, it’s not if, it’s when.
Granted, I welcome the pullbacks because I also believe they are buying opportunities and right now i also think this breakdown was a good shorting opportunity.
In my FREE iknkfx.com Crypto + Forex chat room, i alerted last night of the forming pattern that signified the pullback and then proceeded to drop another 900 points at the low.
Looking at the 4 hour chart this is what signified the breakdown trigger for me
- 50ma breakdown for the 2nd time. First 50ma breakdown resulted in the first big pullback
- failure to hold over all time highs
- Breakdown of the symmetrical triangle formation intraday
Alternatively, we are also hitting the ascending trendline at level 1 on the chart on the 4 hour as well, so there is also the chance this pullback could end here before heading higher.
But looking at the daily chart, i think the highest Reward to risk buying opportunity would be near the 1600’s which is also the 50ma on the daily in addition to a confirmed technical support level
As XRP is my current main holding this potential washout in BTC will provide the opportunity to add more to my XRP if we dip to buy the targeted level in the .51 – 46 range. Time will tell!
What Do You Think Bitcoin Will Do?
- Bitcoin Bounces Off Level 1 Support
- Bitcoin Dips to Level 2 Support
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