As you know, 2 days ago I bought Bitcoin at the price $37800 according to the strongest buy signal on the 4h, the entry point was found at the 1h timeframe to reduce risk and increase the potential profit.
Now I am searching for the exit point. Globally I expect the drop to the $26000 as the final wave 5 after the A-B-C-D-E triangle in the global wave 4. Thus, the drop can start anytime, we should be ready. Let’s take a look at the last downside impulse. The price now reached exactly the 0.61 Fib level. Moreover the supply zone 4h is located here. This is the very strong level of resistance. If I will see the true divergence even on the 1h timeframe I am going to sell all my position. In this case the scenario (2) is going to play out. If we will see the clear breakout to the upside I expect the short squeeze up to $46000 to liquidate short positions and force the people to buy on the “key level” breakout – scenario (1).
Don’t buy when the price is pumping – this is what the most of traders do. Be patient and follow your trading strategy, risk and money management!
Bitcoin – where to take profit?