Daily Report – Bitcoin and Market Update (January 2 2021)
Middaily broke above 30k and here’s when the true volatility begins. Overbought across all the timeframes so trend is anywhere near finishing around current levels imo unless we close day/week above 30k. ADX peaking, momentum overbought while price soaring inside the most aggressive bands of Birbicator PRO. Next resistance shown is 32.6k. Average daily volatility per ATR is around 1.6k so large oscillations on both ends expected. Imo that is how blow-off top MTF mechanism works. Price is climaxing in euphoria. If the top occurs anywhere here (shorting this is forbidden of course), then we should easily see 3000-4000$ dumps within a single day. It’s playing with fire for trading vertical chart at peaking madness so trail up stops and without proper risk management do not even approach to trade this. If bitcoin dumps, altcoins will likely get smashed in negative price shock at once due to overwhelming volatility. Imo it’s worth to set stop loss below the daily/middaily open in case the upside spike going on receive strong influx of sellers in supply. Levels for stops: 29787, 28987
MTF chart shared here represents the rising wedge breakout to the upside empowered by additional short squeeze. IMO we’re in the final phase before the sellers activate so now it’s really the time to prepare. It’s suicidal to counter trade the trend right in euphoria as you most likely get liquidated on the insane volatility range, which is typical to tops. Let’s not forget about the CME gaps 23-26k and 18.2-19.1k. It will take time to fill them for sure. Until MTF correction appears – I think it will be easy to recognize ABNORMAL VOLATILITY – it’s illegal to short. Even MTF corrections are by definition only to provide you with compounding/better entry opportunity. The corrections are weak and short-lived by their nature. Local scenario to watch is the one given in the chart and marked with a thick upper trendline and breakout zone. If the breakout zone AND the breakout candle get invaded back again in 32k or 33k rejection decline, and close below the breakout trendline, then this is most likely taking us lower down to 25k and probably confirm the retracement. Please, mark the trendline and invalidation zone in your charts and watch it closely. Be ready as you will never catch the top. What you can do instead is that you can start scaling out. As you know, I’m currently hedged with 50% BTC 50% USD setup. It’s called taking profits after 700% rally with no retracement. Stay safe now. Trail up stops. Take profits and enjoy the rest of the show while many will get ultimately liquidated anytime soon. We’re in the danger zone.