That drop was predictable. The bottom trendline broke just after a bearish divergence on the 1 hour. Lots of other bearish signals to negate a steady increase. But the drop stopped abruptly at ~7370, the original start of the last leg up.
For me, it should have dropped further, and perhaps it still will. But this has the appearance of a "bear trap," triggering stop-losses (it hit my highest one) and panic selling, only to meet enough buyers and for the selling pressure to back off. All the stops have been cleared, the weaker hands have dumped.
Will the experienced traders follow the more recent bearish signals, bringing in more selling pressure? Or are there more traders playing the long game, waiting to see what happens in the wedge?
Given the weekly/monthly rhythms, we should be entering a bullish cycle, so those who are trading BTC now (and there certainly are fewer now than in recent months) are holding and waiting for more consistent signs before exiting their long positions.
Because I trade cryptocurrency to accumulate BTC, and because I think we seem to be transitioning out of a bear market, I am holding my spot position long, but I am assuming a neutral outlook until better, clearer signals emerge. Long positions should be held with caution.
For me, it should have dropped further, and perhaps it still will. But this has the appearance of a "bear trap," triggering stop-losses (it hit my highest one) and panic selling, only to meet enough buyers and for the selling pressure to back off. All the stops have been cleared, the weaker hands have dumped.
Will the experienced traders follow the more recent bearish signals, bringing in more selling pressure? Or are there more traders playing the long game, waiting to see what happens in the wedge?
Given the weekly/monthly rhythms, we should be entering a bullish cycle, so those who are trading BTC now (and there certainly are fewer now than in recent months) are holding and waiting for more consistent signs before exiting their long positions.
Because I trade cryptocurrency to accumulate BTC, and because I think we seem to be transitioning out of a bear market, I am holding my spot position long, but I am assuming a neutral outlook until better, clearer signals emerge. Long positions should be held with caution.
