Bitcoin is still trading in the parallel channel. It found support at $6,070, and had a weak rally back up to $6,250. The price briefly touched $6,300, but was immediately sold back down. It has been moving sideways in a tight range from there, until it briefly shot up to $6347 a little while ago, but it was immediately sold back down again hard and fast, which is another bearish indicator in my opinion. It looks like it found support and made a higher low, and traders will probably enter positions here, but I won’t be joining them.
The daily and weekly chart are still showing a lot of bearish indicators, which leads me to believe the current price action is a bull trap in the making. My outlook is still bearish, but I have closed a few trades already at a small profit the last couple days. I would call this a high risk trade zone. I won’t be entering any new trades until we have a much bigger fall, or the volume picks up steam and convinces me a trend reversal is mounting.
If you want to trade at this level, I recommend you approach with caution and a tight stop loss, or not at all. It seems that traders are split down the middle right now with equal numbers shorting and going long, based on what I’ve read on Trading View today. I think a lot of traders believe that $5,750 will be the final low for the year, so it makes sense to go long at this level from that perspective.
I make no assumptions about the final low. We certainly have room to fall below $5,750, as much as I hate to entertain that thought. I have long positions in the market that I don’t intend to sell until we’ve approached the top of the next bull run. But I keep the majority of my portfolio liquid for aggressive swing trading.
I think if we make a new lower low, then it will probably happen sooner rather than later. The bears are still in control of the market. My best advice to everyone right now is don’t fight the trend, and don’t trade with scared money, and you should do okay. Oh yeah, and don’t forget to book your profits! Good luck everyone, and happy trading.
Note: This is not financial advice. Everything written here is for entertainment or educational purposes only. Always do your own research when you invest, and never invest more than you can afford to lose.
