Buyers EYES UP…Shorts Stay Frosty

BITCOIN LONG TERM OUTLOOK

Use those macro down trend lines to confirm breakout BEFORE considering longs. Long term trends in Bitcoin continue to remain bearish. Price action is confirming that it just cannot hold, and continues to break down. Long term holders of bitcoin should be out, or at least holding less than core allocations. While shorting can be considered aggressive, long term position players could consider finding quality pattern formations to trade on the short side with shorter trade durations.

BITCOIN MEDIUM TERM UPDATE

Medium term trends in Bitcoin are bearish, however yellow light caution must be given. While medium term trends are maintaining a bearish bias, our confirmation indicators are showing this most recent price action may be waning in the direction of the predominant down move. If the longer term trend continues to remain in a state of selling, then aggressive traders can look for signs of overbought exuberance to leg into a trade, but it just isnt there right now. The reduced vol inclines us to stay out due to ability to snap to upside and gap fill.

BITCOIN SHORT TERM VIEW

Short term momentum right now is negative. Internal intraday metrics to weekly measures are showing that bitcoin is weak and sellers continue to maintain the stronghold. Long term position holders to medium term trend traders should be out. However, short term weekly swing trades to high quality intraday pattern alignment with the current momentum has an increased probability to the downside by utilizing this very tight range for short and targets.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network