Yesterday I wrote that closed my long position at $42080. Why I did it? First of all the risk to reward was even more than 1 : 4 and I saw the difficulties for the further growth (according to volume analysis). Now we can see the sharp dump.
The price choose the red scenario from the previous analysis and found support exactly at the 0.618 Fib level for the last upside impulse. Will we see new higher high (above $42500) or go down below 30k first? I don’t know, it makes no sense. I am going to execute long or short trade when the signal flashes. There are no any signals now. When it’s time I will tell you! This analysis is just my assumption for fun.
I can see the selling pressure – the downside and candles with the large volume. It means that the price is now ready to grow yet. We can see the supply zone 1h at $40500. If you want to trade you can place the limit short order there with the stop loss above it, but I am not going to execute it without the strong bearish signal. Globally, I suppose the the BTC price will reach $30k this month, but I want you to understand – it makes no sense without proper money, risk management and trading strategy.