Bitcoin Fade 7/19/2022

By CurrencyWave | Bitcoin Multiple Time Frames | 20 Jul 2022

We have been big believers in Bitcoin's ability to go higher, but this is only a tactical trade to buy it cheaper with possibly more capital.

The rationale for this trade is because of how high Bitcoin has run off the lows. Here are some elements that influence this trade

This is how the trade is structured:

Sell short Bitcoin at 23,098
Place a protective stop at 23,480 - equaling 380 points of risk
Set a profit target at 22,246 - 852 points of opportunity

Here are the technical and psychological reason for believing in a throwback

Measured objectives were met - the pattern of Bitcoin going higher has been fulfilled
There is a slight rejection off of the 50-period simple moving average
There is a loss of momentum, and the percentage increase off the lows has been significant

This is only a tactical trade with tight risk parameters

Also some of the motivation for this is missing some of the downside from 69,000 and the bears have been quiet

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CurrencyWave

I am a chart analyst who likes to trade a hybrid day-trade to swing trade timeframe

Bitcoin Multiple Time Frames

This Journal tracks trade set ups. It filters the daily, 4 hour and 1 hour time frame. How we use multiple time frames to filter out the high quality set ups from low ones. The journal uses more than 3 time frames. This is a journal of swing trading with a valid set up and proof of concept. The journal focuses on whether a higher time frame aligns with the lower time frame to profit from a long position or a short sale. The journal also notes the position of a swing high and swing low on the price curve.