Jumping back in after a holiday weekend! Typically price action doesn’t do much until until everyone has returned back from holiday, but BTC decided to change the pace and make a move earlier today.
In recent posts, we have been watching a range on BTC and we have finally broken out of that range. The chart above shows the larger view of this as well as shows the next upside target for BTC. This breakout looks like what we were waiting on, with a couple hesitations for just jumping into longs, detailed below:
This is right after a holiday and seems to have come slightly earlier than typical. The reason this is bad is because volume is typically lower, which makes it easier for price to be manipulated.
There is a lot of US market news that could stir up the market mid-week. This is typically a way that swing failure patterns (SFP) often begin.
Altcoins are still not getting much of the action, which makes them even higher risk to trade than normal. I’ll touch on this more in a bit.
The chart below shows my overall plan. As long as BTC is above this range, I will long setups as long as they are valid and breaking resistance. If a SFP is to occur, we will know because BTC will break back below the support level shown. Until that breaks down again, I am not entering shorts but I am charting some to track for if that time comes.
Next thing, the news that would stir up the market and cause a SFP is the following CPI and PPI news releases. The following times are shown in EST (UTC-4). It’s possible this news will have no impact, but there is always strong volatility for the time immediately following those news updates. The US has also indicated to sever market conditions so it is anticipated that this news will come out worse than most of the market expects.
And lastly, altcoins have not been getting much action. In a previous post, we talked about altcoin season and bitcoin season and right now BTC is stealing the show. That can also be seen with the BTC.D chart increasing.
With that said, I am still looking at altcoin setups to long and short respective of the level bitcoin is at. Look for those updates in a separate post shortly.
Jumping back in after a holiday weekend! Typically price action doesn’t do much until until everyone has returned back from holiday, but BTC decided to change the pace and make a move earlier today.
In recent posts, we have been watching a range on BTC and we have finally broken out of that range. The chart above shows the larger view of this as well as shows the next upside target for BTC. This breakout looks like what we were waiting on, with a couple hesitations for just jumping into longs, detailed below:
The chart below shows my overall plan. As long as BTC is above this range, I will long setups as long as they are valid and breaking resistance. If a SFP is to occur, we will know because BTC will break back below the support level shown. Until that breaks down again, I am not entering shorts but I am charting some to track for if that time comes.
Next thing, the news that would stir up the market and cause a SFP is the following CPI and PPI news releases. The following times are shown in EST (UTC-4). It’s possible this news will have no impact, but there is always strong volatility for the time immediately following those news updates. The US has also indicated to sever market conditions so it is anticipated that this news will come out worse than most of the market expects.
And lastly, altcoins have not been getting much action. In a previous post, we talked about altcoin season and bitcoin season and right now BTC is stealing the show. That can also be seen with the BTC.D chart increasing.
With that said, I am still looking at altcoin setups to long and short respective of the level bitcoin is at. Look for those updates in a separate post shortly.