I suppose it is pretty clear that it was a good idea to resist the urge to chase yesterday’s rally in Bitcoin. As we hypothesized yesterday, it was, in fact, a swing high we would have been buying. I had been concerned yesterday with the fact that the 8×1 Gann angle stopped the rally (yellow highlights). So, what do we do now? Well, let’s first look at the bear setup on the 2-hour chart:
But before price can test the 4th arc, it must get through the 3rd arc pair, and the 3rd arc pair is often a trend stopper. So I will watch that area with blue highlights very carefully to see if it shows signs of being broken or not.
Now, let’s look at a bull setup on the daily chart:
In fact I expect we WILL get through this arc in short order, and that the next leg of the rally will continue. I’m just not sure it will happen THIS week.
However that blue vertical line is indicting that we are at a time to expect something to happen (180 degrees past the start of the rally in mid-May). So, stay sharp.
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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