Hello all, here is the another bitcoin perspective from the daily time frame.
Yesterday, the price has dropped heavily from the $9800 to $9200 just in 1 hours of trading session. Because of this drop, a lot of traders has changed their bias from bullish to bearish. But, for me it's not that easy change bias only looking at the panic attack in a single action! For me, as a trader we have to stick on our original plan and be sure with what we've done. Based on current price movement, I can't be bearish unless the price breaks down of the lower line of the yellow up trend channel. Currently the price is still trending right at the median line of the channel which in my opinion, it looks like a break out will occur in near future.
The next factor why I keep my own bullish bias for short term is the RSI, The RSI on the daily chart is trending right above the 60 level which is the boundary between neutral and bullish zone. This means the price is trying to shift its momentum from neutral to bullish.
The last thing I want to highlight is that there is a confluence factor that may cause an upward movement either it's a quick wick or a slower movement to the upside. The fibonacci range, You can see that the white region that I draw on the chart is having a confluence with the upper line of the channel and it's an area between the -0.382 and -0.618 fibonacci retracement. That's why I will conclude that this area is the most heavy resistance for current movement.
My bias remains the same with the bullish short term and unbiased mid and long term. Currently, I am keeping 50% of my portfolio in cash to hedge in the potential long term drop.
Yesterday, the price has dropped heavily from the $9800 to $9200 just in 1 hours of trading session. Because of this drop, a lot of traders has changed their bias from bullish to bearish. But, for me it's not that easy change bias only looking at the panic attack in a single action! For me, as a trader we have to stick on our original plan and be sure with what we've done. Based on current price movement, I can't be bearish unless the price breaks down of the lower line of the yellow up trend channel. Currently the price is still trending right at the median line of the channel which in my opinion, it looks like a break out will occur in near future.
The next factor why I keep my own bullish bias for short term is the RSI, The RSI on the daily chart is trending right above the 60 level which is the boundary between neutral and bullish zone. This means the price is trying to shift its momentum from neutral to bullish.
The last thing I want to highlight is that there is a confluence factor that may cause an upward movement either it's a quick wick or a slower movement to the upside. The fibonacci range, You can see that the white region that I draw on the chart is having a confluence with the upper line of the channel and it's an area between the -0.382 and -0.618 fibonacci retracement. That's why I will conclude that this area is the most heavy resistance for current movement.
My bias remains the same with the bullish short term and unbiased mid and long term. Currently, I am keeping 50% of my portfolio in cash to hedge in the potential long term drop.
