Advised Bitcoin Update
Lets not be long winded, the market is setting up to have a bearish pull back in the next couple days.
But we have to wait to see what these peaks look like.
At this stage, it seems a significant amount of the move is over and happened quickly in under an hour after my previous post.
When peaks form like this it is usually bearish. This is due to “left translation". When peaks form early in an instrument cycle of interest it is a bearish indication. Zooming directly to Target is a bearish indication and the sign of a blow off top
Price is also tracking and shadowing the 20 day FLD, which means that the next larger cycle above is probably taking over to the downside.
Really all we can do is set a stop entry below the previous 1 day cycle low at this point. I dont believe in watching for double tops lol.
The next short entry has to be a broken VTL to the downside.
Let me explain.
Todays move was driven from yesterday’s low. We now have a 1 day cycle low formed today as well…
Draw a trend line (Valid trend line) attaching these 2 lows.
Thats your 1 day upward sloping VTL!
Isnt that amazing?
When that breaks you will know that there is a peak of a 2.5 day cycle no more than 2 to 2.5 days back on the chart. Of course this hasnt happened yet because we dont have the ability to draw a 2.5 day VTL.
The question you need to ask yourself is if you're comfortable with that stop size or do you need to wait for a 2.5 day cycle VTL to break which is larger and has more confidence?
There is a possible entry coming and here is what I think…