Hey Traders so Bitcoin wow what a move down in only 3 days!

Well thats why I always say these markets can change in the blink of an eye. Never trust a trade only trust your trade plan to get in and get out with a profit!

Ok so well what do we have here?

So I think last week I might have said if this thing can’t hold 112,000 we could be heading lower. But I also had thought that the charts were looking more bullish with support levels be rejected 3 times. Oh well sometimes our compass if off that is trading sometimes we get it right and other times we are completely off! 😁

I was bullish which support holding however now that support of 112,000 has been broken on a daily close to me it’s looking bearish now. As a technical analyst I can’t ingnore that 123 top formation on the charts. Just like I can’t ignore the 123 bottom formation on the US Dollar chart from a week ago.

Scenario Time!

Bullish- I would say only buy this thing if it breaks above the 3 point with a daily close of 118,000.

Bearish- watch for retest back to 112,000 then sell the rally and you a risk stop I would say above the 2 point at 119,00. Its a wide stop but sometimes you gotta give the market room to breathe especially if this is the beginning of a large move down, Also with the US Dollar showing a bottom formation on the chart that also signals more weakness ahead for Metals, Commodities, Crypto etc…

COT- Commitment of Traders report still showing the funds short. The Large Specs have been short this whole time on the way up but as you can see they were starting to close short positions giving an illusion of more buyers entering the market. But seems to me like now they might increase short positions on the next rally which could be bearish I will watch to see what happens this friday when the new report is released.

Good Luck & Always use Risk Management!

(Just in we are wrong in our analysis most experts recommend never to risk more than 2% of your account equity on any given trade.)

Hope This Helps Your Trading 😃

Clifford

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