Many Twitter Crypto influencers will claim that we are currently in a bullish marker, but anyone who's been in Crypto long enough can see that this is not necessarily the case. That doesn't mean that we aren't at the door of a bullish market, however it's clear there's a lot of uncertainty about the near future price direction.
If we look at the charts technically, we can see an ascending wedge and a divergence with the RSI, both of which are bearish, so from a technical point of view, a trader should be short, and perhaps should have been short for a while now. That being said, because a stop-loss above $10500 (level after which we turn bullish) could mean significant losses, depending on your position and stash, perhaps the most reasonable approach for a lot of people would be to wait until we have a better idea of our current circumstances. That, or lower your position and moving your stop-losses to where losses are more manageable. Then you could add to your short if we break down below $9050, which is the local low in the 1D chart. This is what I'm doing myself.
It's impossible to win them all, or even most, when trading, so the key is using a good strategy and an even better risk management method in order to minimize losses and maximize wins.
Right now, it's clear there's a pretty intense battle between bulls and bears, and I suspect there are big players on both sides. The next high liquidity pocket is just above $10500, so you can expect a big push down just after breaking out above that level, but if we're indeed turning bullish, then the break out will be strong and we should expect the price to get much higher, so the approach I would take would be entering a little above $10500 with tight stop losses, or at the pullback, which may happen near $10500 or above. We'll know that price will most likely continue going up. If you are familiar with the way Bitcoin behaves, you know that it's not that strange to have many bearish indicators getting invalidated in a bullish market, the problem right now is that we really don't know if we are indeed in a bullish market.
Hope this helps,
Cheers!
If we look at the charts technically, we can see an ascending wedge and a divergence with the RSI, both of which are bearish, so from a technical point of view, a trader should be short, and perhaps should have been short for a while now. That being said, because a stop-loss above $10500 (level after which we turn bullish) could mean significant losses, depending on your position and stash, perhaps the most reasonable approach for a lot of people would be to wait until we have a better idea of our current circumstances. That, or lower your position and moving your stop-losses to where losses are more manageable. Then you could add to your short if we break down below $9050, which is the local low in the 1D chart. This is what I'm doing myself.
It's impossible to win them all, or even most, when trading, so the key is using a good strategy and an even better risk management method in order to minimize losses and maximize wins.
Right now, it's clear there's a pretty intense battle between bulls and bears, and I suspect there are big players on both sides. The next high liquidity pocket is just above $10500, so you can expect a big push down just after breaking out above that level, but if we're indeed turning bullish, then the break out will be strong and we should expect the price to get much higher, so the approach I would take would be entering a little above $10500 with tight stop losses, or at the pullback, which may happen near $10500 or above. We'll know that price will most likely continue going up. If you are familiar with the way Bitcoin behaves, you know that it's not that strange to have many bearish indicators getting invalidated in a bullish market, the problem right now is that we really don't know if we are indeed in a bullish market.
Hope this helps,
Cheers!