As we look back on the week Bitcoin was clearly a win. Up from ~ $630 to $710 since this time last week. Ethereum on the other hand, was a loser, down from ~ $13 to ~ $10.75. Happily, our readers were on the right side of these trades for the last week.
Having a good week is cause for celebration, but there is always next week to consider. Is it time to take profits on our positions? Let’s start by looking at bitcoin’s daily chart.
But, cautious traders will note that price is at resistance and we are almost at the end of the 3rd square in time, which could herald a reversal. What to do? Taking profits here and re-entering when and if price closes above the 1×2 angle is a safe move, but is it too cautious? That is ultimately a judgment call and speaks directly to how aggressive the trader is. But let’s try to get more information from a different setup before we decide.
So, what is the best move here for bitcoin traders? That is entirely dependent upon how aggressive the trader is. Personally, I am quite happy with the $80/coin I made this week and will take money off the table here. My intent is to buy those coins back again when/if price gets above the resistance we see on both the charts. This is “safer”, but the downside is that it will mean missing a few points on the upside if price pushes right through this resistance while I am asleep. Trader’s opinions will differ on this point. That’s quite ok…
I want to take a quick look at ethereum tonight also, because it is clearly breaking down as we suggested it might. Yesterday I suggested shorting the coin if it broke below S11.22, as it has. Here is the daily chart:
Many traders seem to like trading the ethxbt pair. While I normally do not like trading that pair, in this case I feel a bit differently, because the two coins seem to want to head in different directions. So, there is a possibility that the gains from trading ethxbt might be substantial. Normally, I hesitate to trade that pair because you need to be right about 2 different charts to do well. As experienced traders know, it’s often difficult enough to be right about just one!
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Image from Shutterstock.
Last modified: June 10, 2020 4:41 PM UTC