Bitcoin continues to make higher highs and higher lows, which is indicative of a market that remains in a bull trend. However, I am beginning to question the advance. There are a number of reasons to embrace a bit of caution.
Here is the daily chart:
Noting that, the fact that the 5th arc pair is now very close gives one pause. The 5th arc pair is often a trend-stopper.
Let’s look at a long-term setup on the 8-hour chart:
Next, let’s look at a close-up of this chart:
So, each of these charts is approaching resistance, and we see evidence of a bearish chart pattern. Lets look at an 8-day chart:
This long trade suddenly looks much too risky for my blood. I have closed my longs and have adopted a bearish stance, looking for signs that a reversal may begin. As I have often stressed, we don’t need to rush into such a position. Wait for confirmation…
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.
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