BTC breakout
TGIF guys - I think this is going to be an active weekend for BTC so no rest for the weary.
As we come to the close of this weird diamond and/or ascending triangle and/or symmetrical triangle, people are getting whip-sawed into oblivion. It looks like people are setting tight stops in hopes of riding the volatile price action, which is leading to more volatility. If you're a chartist, there's 8 different ways to look at this consolidation/reversal pattern at the top of the flag pole depending on time frame and wick vs. body trend lines.
I was able to ride the pump out of the pattern and closed at 7611. It's worth noting that I had my take-profit set much higher at 7750. However, due to the weird price action and lag on Bitmex, I market closed and will not take another trade today unless there is a very enticing setup. The action is way too unpredictable to offer the proper risk/reward, especially after already closing a good trade on the day.
If you're charting the hourly, a fairly good case can be made that we're in an ascending triangle pattern. It's important not to be personally attached to the pattern and if price action exhibits behavior that contradicts your predictions, change your mind and change it quickly. Despite the whipsaw up to 7700ish, the hourly candle still closed in the triangle. We haven't had confirmation of a break upwards or downwards.
As previously stated, I believe the "swing trade" for the next few weeks is to look for a place to short and ride down with BTC in search for the bottom before we start the new market cycle. I think we're close to that point, so I won't be looking to take any additional long positions, but technically the setup is still there if you want it. I think it's a bit too high risk so I'll be riding into this weekend on the sidelines until something else crops up.
A lower risk strategy might be to flip over to the alt charts on 'mex and short the shit out of them if BTC does break out.
Stay safe, fam.
(Also, if you find anything I've written helpful, feel free to use my bitmex referral link below. It's free to sign up, no KYC, and leverage up to 100x on BTC. It's where I do all of my leveraged crypto trading.)