How we predicted the direction of bitcoin
This is the strategy and method we used to predict the direction of bitcoin and entered a high quality trade short. Starting on the weekly time frame, price made a lower high which signalled that the uptrend was over. Knowing that we are now in a downtrend, we want to trade with the trend as this makes any trade you want to enter a lot more effective because we naren’t trading against the flow of the dominant direction.
Here on the daily time frame, you can again see that we are in a downtrend. We then noticed a break of support which further shows the strength of the downtrend. After the break of support, price then pulls back to retest this support turned to new resistance. This is where the trade entry occurred and we entered this trade using the 4H time frame.
Here on the 4H time frame is where the trade entry occurred. You can clearly see that this level of support is very key because it acted as support through 5 rejections, before finally breaking right through because of the strength of the downtrend. A lot of this had to do with fear selling because the lower the price of bitcoin got, the more people would sell. After breaking support, price then pulls back to this support turned to resistance, rejected it with a nice candle with the wick sticking out before continuing the downtrend which was a huge move and a huge trade. Notice how we did zero guessing, we waited for the market to show its hand, traded with the trend, and waited for a perfect entry.