Bitcoin Breaks Its Channel!

And other weekly updates: total3, btcd, spy, usoil, vix, dxy.

Good Morning Traders,

In this week’s update, we’ll start with Bitcoin. Many of you were wondering why I sold Bitcoin even though we had just broken up from our channel seen in the chart below. Well, there are a few reasons for this. Let’s cover them quickly here this morning.

Bitcoin Daily

First of all, those of you who follow me and read my updates regularly know that I have been targeting 68k all along. At first, I was not expecting to sell at this mark even though I knew how significant it was, especially since we broke above that target. In the old days, I probably wouldn’t have sold here. Even this morning, I am still questioning whether this was the correct move. But, based on my newly implemented trading strategy, I must stick to my guns. Even though, it appears Bitcoin may go higher, my signal combo flashed RED on Saturday. It was a little early as I like to see confirmation with that RSI MA cross, but I decided to sell there. The signal was then re-painted, and the signal was taken away. Then, just this morning, it was re-painted again and put back. Even though the RSI MA still hasn’t crossed down, I have sold and will start to look for a better entry on Bitcoin. If I can’t find one, no big deal, the market always gives us other opportunities.

In addition to the sell signal being given and our hit of 68k, there are a few more technicals I am seeing that support the idea of selling here. You can see that big old order block above. I use two indicators that help me to determine where these buy/sell orders may be. One is by LuxAlgo called Liquidity Swings and another by Flux Charts called Volumized Order Blocks. It is this latter order block you are seeing on the chart above. This is showing me that we are running into big resistance around 70k. Two things could happen here. Either we break straight through that soon (maybe this week) and liquidate all the shorts forming a huge green candle, or we start to run sideways/down for a bit longer.

The other technical I am seeing is that ascending wedge. Usually, those things are bearish.

Of course, if the market is really hot, it can blow right through all of these things and make a lot of traders, including me, eat their technicals. That is always a possibility and lately it seems like more of a probability. Bitcoin loves to make traders look stupid. Lol. But that’s okay. As traders, we have to pay attention to these indicators, and as stated earlier, if we turn out to be wrong there are always more opportunities for entries to be found elsewhere. I will help you all look for these opportunities, particularly in alts and meme coins, the latter of which is very hot rn.

Now, let’s cover some of the other charts that I usually will attend to in these weekly updates. We’ll move to the TOTAL3 chart next.