Back to our regular programming (Left Country for a couple of days) Looking at our highest timeframe we see price is still testing our dynamic & horizontal support. Stochastic RSI showing momentum remaining bearish. A break below $7,000 leads to a drop $3,000, expecting price to hang out in this zone for a couple if days. Not adding anymore fiat until confirmation of bulls being back on higher timeframes.
Shifting to our pattern timeframe we see daily candles starting to get smaller and smaller. Price looking to make break, only question is which direction? A daily close above $7,600 activates our trade, however if we see a daily close below $7,000 expecting a sell off towards $3,000 as our bottom. Stochastic RSI showing momentum is starting to bottom out.
Finally looking at our trigger timeframe we see a couple of resistance price must get through in order t save it from a panic sell off. First resistance at $7,400 followed by resistance #2 at $7,600. A 4hour close above both of these levels activates our trade. The next run up to $25,000 will happen in a matter of days not weeks or months like the last one.
Conclusion
Wait for a daily close above $7,600
