What is up boys and girls? Hope you are doing alright.
Whenever the sentiment gets too negative, it is just the right time for a bounce. Added with some positive news about regulation, or in this case, the lack of it from the recent G20 meeting we got this:
This one is in insight but it is always fascinating how it appears naturally in price action. An almost perfect bounce from the 0.236 Fib to the 0.382Fib seen in a couple of hours. In case we continue this short-term uptrend, a re-test of the 9000-9500$ level could become likely:
Remind yourself that this is only expected short-term. We are not out of the woods yet and actually, on bigger timeframes we could be setting up for further downside. You know, the one that no ones is expecting when it comes.
Currently we have been making HVF downside targets from the 18000$ level which is shown in the 2nd picture (I know it looks confusing just trust me on this one). Pretty much all the big setups you see are to the downside and we did see that 6700$ being made which does not leave out the possibility for downside continuation.
As I have and continue to disclose, the great majority of the position currently taken is in cash.
As seen in the first picture, we have created a valid 2H for our inverted HVF setup and the blue region is really key to determining if we are likely to reverse this downtrend or be rejected at the 9000-10000$ (note the round number significance) and setup another inverted HVF which would see us far below the current low at 6000$.
In case you have no clue of what a HVF is, check out the post where I go over the basis of HVF Theory and what characteristics of price behavior I am looking for on a chart:
https://steemit.com/trading/@beindependentbb/19-what-is-the-hunt-volatility-funnel-hvf
That is the current gameplan. Safe zone up until the 9000-9500$ range and then re-evaluate any positions at that point. Remember, this is likely to be a short-term bounce for a great majority of altcoins which are looking bad atm so play accordingly.
As always, take care!
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