Sell below 11083. Stop loss at 12029. Take profit at 9443 and 8142. Reason for the trading strategy (fundamentally): News around cryptocurrencies have not been too positive recently. The latest being Korean crypto exchange Korbit banning non-citizens from depositing local currencies on its platform. The move was particularly because of new regulations banning anonymous cryptocurrency exchange accounts and strengthens know-your-customer (KYC) rules. As more such regulations start rolling out, we’ll likely see more and more bearish momentum building up on cryptocurrencies. Reason for the trading strategy (technically): Price has continued to drop strongly as predicted. We remain bearish looking to sell on strength below 11083 resistance (Fibonacci retracement, breakout resistance level) for a further push down to at least 9443 support (Fibonacci extension, major swing low support) before 8142 (61.8% Golden ratio retracement, 61.8% Fibonacci extension). Stochastic (55,5,3) is seeing major support above 7% so we have to be careful that a bounce might occur soon and it would be most ideal to look for a good entry point with this bounce.
Here's a question for you, Mex. I get everything you're saying and have been following along, but doesn't it feel real obvious? Where's the whale trick? That's what scares me, not having some clearer ideas for how the whales are going to outsmart us all.
For example, in the last big correction in September, after BTC/Eth/Ltc corrected 40-70%, they bounced up and ALL the TA pointed to a second drop of some kind, but it never happened. The whales swallowed up all the shorts, things stayed flat and the bears got killed.
If it's so clear things are going down, what could the whales be planning? I see only two options at the moment:
1. Cut this second decline short before all the TA predicting $600 Eth and 8k BTC. Just when things are looking like we're about to get there, the whales will set a bottom HARD and that will be that. That's basically how the July Eth correction ended. Everyone was excited to go short from 150 to 100 and WHAM a huge buy kicked in at 130 and a few hours later Eth was at $180 and hasn't been below since.
2. Pushing things much lower than all the TA is predicting, lets say Eth to $420, BTC to 5k, and LTC to $70.
The way I see it, scenario 2 sucks but all you're doing is missing out on coins you COULD have bought. Meanwhile scenario 1 sucks way harder because if you're short when the bounce comes in...you're coins aren't coming back.
What do you think? I just think the whales read the TA also and plan around it.
Rofxod
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why stop loss at 12k ?
CRair
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@Rofxod, short! short means beat for downward moves, long for upwards. check bitmex! you can bet both
For example, in the last big correction in September, after BTC/Eth/Ltc corrected 40-70%, they bounced up and ALL the TA pointed to a second drop of some kind, but it never happened. The whales swallowed up all the shorts, things stayed flat and the bears got killed.
If it's so clear things are going down, what could the whales be planning? I see only two options at the moment:
1. Cut this second decline short before all the TA predicting $600 Eth and 8k BTC. Just when things are looking like we're about to get there, the whales will set a bottom HARD and that will be that. That's basically how the July Eth correction ended. Everyone was excited to go short from 150 to 100 and WHAM a huge buy kicked in at 130 and a few hours later Eth was at $180 and hasn't been below since.
2. Pushing things much lower than all the TA is predicting, lets say Eth to $420, BTC to 5k, and LTC to $70.
The way I see it, scenario 2 sucks but all you're doing is missing out on coins you COULD have bought. Meanwhile scenario 1 sucks way harder because if you're short when the bounce comes in...you're coins aren't coming back.
What do you think? I just think the whales read the TA also and plan around it.