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.
Image from Shutterstock.
Last modified: July 13, 2020 3:14 AM UTC