Pullback from the Pump

27 feb 2018

There was a interesting pump yesterday from 9.3K due to how the 15m, 30m and 1H MACD performed a cross up at the same time, causing all the bots to buy in together. That bounce from 9.3k was expected to some degree but it really weren't expected to go that high. So now it is rather confusing whether wave 4 ended there and 5 started (assuming it was not an ABC climb).

I am still bearish due to the bearish divergence on the higher timeframe, and I really don't see the overall trend changing after yesterday's pump. So... that makes it a bull trap imo since neither 123 nor ABC appears to have completed and there are alot more rooms to go down. Also, once 8.7k breaks (which is very likely) there is pretty much no support all the way to 6.5k so... the impulse wave 12345 down for the bear market scenario is still valid. BTC needs to clear above $10800 to be considered bullish. But we are going to see to pullback now from the pump and see where this leads us exactly, similar to the Jan 20th pump.

• If you are looking for a long, you might want to wait for it to break above $10800, then wait for a pullback to be supported before making an entry.
  
• If you are looking for a short, a break of $10100 / reject from $10300 could serve as confirmation. If $9500 breaks, you can consider keeping the short open for a swing.
  

27 feb 2018

Nota

Just an update
s3.amazonaws.com/tradingview/snapshots/p/pUSodIs5.png

27 feb 2018

Nota

Well this short turn out a little too north, and the flag broke upwards. My limit orders were hit so now my short sits at $10535 and I will add one more if this goes to test $10800. (Potential peak for wave 2) Playing with fire maybe, not recommended for the faint heart.

From a bull perspective, this looks like a promising moon once we break above $10,800. Currently, price is sitting at the major downtrend line, peaking above and trying to confirm a support.

s3.amazonaws.com/tradingview/snapshots/n/N2h4xmvi.png

27 feb 2018

Nota

If we break above $10800... we can probably hit $11200 to complete sub wave 1 (Wave 5) Then a pullback for hm.. sub wave 2 to $10400. But if we fail to break $10800, then down sharp all the way hard to 8K (Wave 3 down)> That's the game plan in my mind.

27 feb 2018

Nota

That gamble paid off. Price peaked at $10890 and my short at $10800 was triggered, bringing me up to $10711. This is how I recovered when I screw up on a bad trade with pivot points =)

s3.amazonaws.com/tradingview/snapshots/6/6wazLKFn.png

27 feb 2018

Nota

Tentative support is set at $10400 and $9800 since $10650 broke and we are strongly below the major downtrend line again. I won't be updating this idea anymore, but I hope you learnt the importance of confirmation and price targets.

If I feel a reversal is in place, I might create a new idea for long. But you should know me from the chat room. I'm still carrying a 2.5k BTC price tag.