Thursday July 7, 2016 6:45 AM
BTC dropped $50 overnight on strong volume. The patterns showed this was a likely move as mentioned in yesterday’s post. Now, could this move be the classic headfake out of a wedge pattern that happens just before we skyrocket the other way? Sure, but the patterns, indicators and timing of this move all say it’s a real move and there’s a high probability BTC is headed for my target of $375-425.
What about the upcoming halvening? It could surely create volatility, but doesn’t change the downside target for BTC.
This is an excellent time for a strong reminder to succeed in trading: Patterns help identify the highest probability, which should always be respected. It does not mean BTC is certain to drop $200 on this move.
Anything can happen from here and my trading strategy needs to respect this fact as well, but short BTC is the play here. I hope to do this indirectly by increasing my long position in ETH.
ETH hit $9.40 overnight but volume was low and price bounced back to the $10 range. Signals are mixed for ETH’s next move but several bullish indicators have me looking for short term buying signals to increase my current 30% long position.
In the absence of a spike down around $5 where I would consider buying up to 100% position, I like $8.65 as an entry point to buy do a smaller purchase and increase my position up to 50%. I will not trade these targets blindly, I will assess the patterns at the time these targets are hit and adjust as needed.
I will add I am very open to buying more ETH at any time and at any price if I see a bullish pattern raising the probability to the upside. I am watching indicators that say opportunities to buy ETH could occur in the next 24 hours.
NOTE: NOTHING IN MY POSTS IS INTENDED TO BE TRADING ADVICE. Please do not base your trades on any information presented in the materials on this blog as it is for information and entertainment purposes only. You are 100% responsible for your own trading decisions.