Hello guys, it has been quite the crazy time for Bitcoin recently! In this post I want to highlight where I will short BTC/USD (well technically add to my short because I have been short since 9200 as some of you who have read my previous posts may know) and why at this level.
So above is my general analysis for BTC/USD currently which shows where I have placed horizontal support and resistance and also the down trending channels that we are in long-term, medium-term and short-term. I think it is without saying I am bearish on Bitcoin lol!
So where do I think is a really good spot to short Bitcoin and where do I believe my first profit target should be?
As illustrated above, I am looking for price to rebound to about the $7,380 level and for the 4-hourly chart to close just below this resistance level to tell us that it has held. The reason I believe this level could be a good place to short is because it is a resistance area that I identified based on both the Weekly and the 4-Hourly charts.
My first profit target would be at $6,000 and depending on how price acts around that area, if we get down to that price, I would perhaps stay short until my second profit target at around the $4,600 level (based on Weekly chart support level).
So yeah guys, I think a 300 dollar or so bounce from here wouldn't be very surprising and if we do get that I will add to my already existing short position and expect us to go quite a bit lower. Remember that this is not a call to action for anyone else to short at this price level, just what I am doing!
Thanks for reading and have a good day :)
Legal Disclaimer: This is just my analysis and not to be taken as professional financial advice. Do your own research beyond what you read in my blog posts and make your own decisions based on your beliefs about what to invest your money in.