It has been a crazy week with a lot of volatility. We’ve been seeing 4-5% moves in Bitcoin every few hours. I hope you’ve been using your oscillators to identify the whip points and profit on the shorter time frames.
I’ve been loving this shorter time frame chart setup using 5 minute, 15 minute, 45 minute, and 120 minute time frames to scalp Bitcoin this week. I have it setup where each of the four windows are around 1/2 the range of the next largest time frame. To trade short term trends:
- Watch lower high RSIs movements
- Be aware of MACD signal line convergence and divergence
- Identify Stoch tops at across the different charts
- Trade EMA breakdown or ups across the multiple time frames
- Learn more about setting up your own multi-screen trading system and the indicators used here: The Four Screen Trading Method
As far as global perspective for Bitcoin (BTC), we are near the bottom support of the consolidating triangle. It is worrisome that we got here so fast and there is potential to fall out of the triangle. I am waiting for the next big move down from this current dead cat bounce movement up. With COVID-19 cases climbing and the global markets tanking, I don’t think there will be much support for a rally at this point.
If “hodlers” panic and need cash flow (since unemployment is rising constantly and people need liquidity), we could see an even more powerful movement down as they liquidate their holdings. Also, the growing impact of coronavirus in the United States and in the rest of the world also leads me to believe that this situation will have a lasting impact of many months with the economic echos lasting years potentially.
So far, it appears there is no short term resolution to the coronavirus, and vaccines will take up to 12-18 months to develop leading to higher incidence rates in the near future. This could lead us to new market lows in the $3-4K range longer term until hope rises. Fill your alt bags then!
TARGET:
Target sub $5K until we hear positive news about the global coronavirus condition and market improvement.
METHOD
Short with leverage.
I am a simple market analyst – not a financial analyst
Fortis Fortuna Adiuvat – fortune favors the brave
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