Weekly Bitcoin plan: 19 Mar2023
As we hit resistance levels, you may be asking, why I am shorting Etherium? Lets dive into my crypto plan for the next week.
As the banking crisis deepens, it is great to see Bitcoin becoming a safe haven, like gold and silver. This was always the aim. Although fundamentals may mean a $1 million Bitcoin in 3 months, as traders we need to follow the charts.
Bull case
Although I have not outlined the bull case, keep in the back of your mind that there are over 180 banks facing the same risk as SVB. If price rocketed up on one bank, imagine what it could if we have a few more bank runs in the coming weeks. Thats for your investment account. I am trading, so will stick to the charts.
Bear case
I have outlined above where I longed/shorted in 2023. Don’t be fooled though as I exited at my target levels so did not see the full benefit above image suggests. But still, have done well this year with the volatility.
So, what now?
Quite simply, we are at resistance in our channel. Although we are onto knocking the trend line 3 times, I do not assume we breaking through.
- I entered an ETH short at $1750. Its 2% of my portfolio and will add another 2% at +/- $1900 and then again at $2000.
- I would not be surprised if Bitcoin at least makes the $29000 resistance and could likely push up to $32000.
- I am not longing here since RSI is getting to oversold with bearish divergence looking strong.
- Added to RSO, OBV is not looking good with double OBV divergence in play. The On Balance Volume is not looking good and often a leading indicator to whats coming.
Conclusion
So, although it seems a great time to buy, as traders we need to stay disciplined. Bitcoin has had a great push up and after all, we at resistance, its not the time to be buying.
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