Monday June 13, 2016 6:20 AM
A huge spike upward in price combined with massive volume.should not be ignored and that’s exactly what happened yesterday for both BTC and ETH.
I closed out my small position in BTC because it hit and exceeded my target of 665 (I determined an adjusted target of 682 when it hit 665 and that’s where I sold the rest).
The gain on this last piece was nearly 40% with a holding period of a couple of weeks.
Of course I wish my position was larger, but truth is the patterns foretold a pullback before this meteoric rise so I simply got lucky to be long to begin with.
As for ETH, the target of 17.50-20 is now clearly in sight. ETH destroyed a high probability pattern for a pullback, which has to be viewed as extremely bullish.
This is the first signal to confirm my longer term patterns with a much higher price target. I want to see how the next couple of days play out and I’ll share that target well above $20.
As for shorting BTC, a pullback is now sure to come, but from what price is the key question. It’s not a high probability trade to get in front of a freight train which is the pattern BTC is on as we speak. In fact, its an extremely low probability trade, no matter how overbought BTC is. A day like yesterday makes me lose interest in trying to short BTC at all, it’s simply not worth the risk.
I will be looking for opportunities to add to my ETH position again (currently still at 50% of my core position), but I need more than a strong bullish day (though that certainly will keep me holding my current ETH position!). I need a quality pattern to rely on.