Well, we knew a big move was gonna happen for #crypto, and it was most probably gonna be bearish. We also pointed that stocks was holding support well and it rally. So what now? From our last week newsletter:
ATTENTION: It is very important that you understand that the ga beween $btc price and WEEKLY band is narrowing, so A big move is coming soon, purely techincal approach the move has higher chances to be to the downside as trend is bearish, so if you want a conservative approach or low risk, just WAIT to see what happens. Sometimes waiting is the most difficult thing.
Now that stocks have already had their strong rebound from the 10.6-11K support zone they have just reached a danger zone of potential rejection.
In this case, it is best to secure the profits achieved so far and wait to see the outcome (i am closing some positions and moving SL up in others). If Nasdaq manages to hold above the band then we can increase positions again.
Another strategy, similar to what we do with crypto, is to look for stocks that are lagging versus nasdaq to rotate positions.
As we said in past issues, Bitcoin seemed to be breaking the negative trend but confirmation was still missing based on our 3 confirmations models.
As we see in our confluence model, now the 3 main oscillators have turned negative again, so we must continue to monitor them and focus on ANTICIPATING possible rebounds (anticipation strategy) or shorting.
On anticipating a rebound. Right now there is a signal of "probable bounce" on the weekly chart, which is very powerful if it confirms. (wait for the end of the week when the candle closes)
Because we are below a very critical level (17600) if the signal confirms I would not buy spot, I would only continue trading in lower timeframes. Once bitcoin closes a weekly candle above 17600 I would start to consider retaking spot positions, especially if we have an orange dot on the oscillator and the wave turns green.
Not financial advice.