BTCUSD, How to use Bitcoin Price for Trading altcoins
Bitcoin has broken down from the rising wedge pattern, instead of breaking through a MAJOR resistance line. Feel free to scroll back on the chart to see where this (purple) resistance line comes from.
I'd like to explain how I use bitcoin price action to trade into alts. I like to use these resistances or breakdowns to jump a little into alts. This is because alts tend to boom when bitcoin begins to drop from its highest point. This is a good example of where I would jump into a few alts (like the Navcoin chart I linked below).
I will look very carefully for bounces around the support lines i have drawn out (purple dashed lines). If a bounce occurs around here, I'll be looking to take profit or partially exit some of my new alt positions.
Keep in mind that the hardfork for Bitcoin is a little over a week away, so Bitcoin could very well continue it's massive bullrun to reach upwards of $8000. If Bitcoin has an hourly candle close above my resistance line, I will consider exiting the majority of my positions.
Feel free to ask questions below, or to propose your own ideas about what may happen. I enjoy discussions on technical and fundamental analysis.
I'd like to explain how I use bitcoin price action to trade into alts. I like to use these resistances or breakdowns to jump a little into alts. This is because alts tend to boom when bitcoin begins to drop from its highest point. This is a good example of where I would jump into a few alts (like the Navcoin chart I linked below).
I will look very carefully for bounces around the support lines i have drawn out (purple dashed lines). If a bounce occurs around here, I'll be looking to take profit or partially exit some of my new alt positions.
Keep in mind that the hardfork for Bitcoin is a little over a week away, so Bitcoin could very well continue it's massive bullrun to reach upwards of $8000. If Bitcoin has an hourly candle close above my resistance line, I will consider exiting the majority of my positions.
Feel free to ask questions below, or to propose your own ideas about what may happen. I enjoy discussions on technical and fundamental analysis.
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