Why I shorted Bitcoin today?
I've seen many posts calling out a falling wedge pattern set up forming on Bitcoin as a signal to a possible bullish reversal. This is a common reversal pattern that looks great in hindsight, but how do how do you know where the bottom is to place a low risk trade?
To be frank, I have no idea where the bottom will be or which way the price will go . What I do know is that the long term trend is DOWN. Until there is a clear signal of a sustained reversal and uptrend, shorts are favored.
Here is a snapshot of my chart analysis for Bitcoin chart and why i think we should soon see $6,000. I executed a trade earlier today using a STOP-LIMIT order that confirmed a downward break-out. Projected Target 1 is shown.
Target 2 is part of a larger time frame target setup that will offer a 10:1 risk/reward!!
If and when each limit order (including stop) is executed, I will re-evaluate and wait for the next set-up with a favorable risk to reward ratio.
Disclaimer: This is not financial advice and my opinion only.
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Added to my follow list. Keep up the good work and what do you think of the current market?
For now, the top 10 coins are all weak and will continue to drag the entire crypto market down. Positive news will be sold in this market. That's my 2 cents anyway
Good call :D
Agreed. Some alts are appearing bullish (OMG, EOS), however the mid-term market cycles don't seem to be quite finished.