There has not been much change in market price in the last 24 hours; prices have held so far around the $220 level though there have been some fluctuations within the $5 mark. When we last looked there was a downward wedge trend that indicated some bounce but it has not moved there yet. Since we have held steady around $200 it is now more likely that the next lows could be below $200. Let’s take a look at the 3 minute mark:
https://cryptowat.ch/coinbase/btcusd/3min
After we exit this oversold market volume the environment for some short positions could be really, really good. We have moved past $230 which we talked about earlier and the chance for possible $200 coins is a good one for when the price rebounds.That said, I would also caution anyone trading right now because these short positions and possible rallies might not materialize; the market has been fairly stagnant with negative pressure for the better part of a month.
After these recent bearish market conditions, it seems appropriate that Game of Thrones just started back up since it’s been like a bloodbath. The technicals have this same kind of conflicted inertia of oversold orders, particularly in the short timeframes. Volume and volatility also suggest that the market is moving down right now in the immediate future. If volume decrease is to happen we might see a good bottom around $215 to $220 which could serve as our near term target. As a followup to our new near term target we could see a countertrend rally momentarily to $240 again before the secondary drop back to $200 or below. It is definitely time for some quick shorts but be careful about long positions.
Another hypothetical over the next few days is that $215 cannot hold and any short sell recommendations change our small margins. So let’s say that you want to short buy at $210 and sell around $240 but the market holds constant at $215. If this situation is what we experience, we need to move our strategy away from shorts and to slightly longer term stability. Be extremely wary of the falling knife:
“As the phrase suggests, buying into a market with a lot of downward momentum can be quite dangerous. If timed perfectly, a buy at the bottom of a long downtrend can be rewarding – both financially and emotionally – but the risks run extremely high.”
Take care in whatever positions you decide to take, it will be worthwhile as long as careful patience and method are respected. Watch carefully and happy trading.
