BTC 4hr Update – Waiting on trades

BTC has been running up against this resistance level and I wanted to share as I know it can often be hard to step back and look at the market in a (slightly) larger picture. BTC is pushing right up against this resistance level, but struggling to break it.

It’s also important to know that there are A LOT of short liquidations that would happen if BTC does push through that resistance and reaches the $26k price range.

So what does this all suggest? Well, at resistance we know that we don’t want to take longs, however we also know that these markets love to take all the liquidity that they can, and there is a lot of liquidity to be had slightly higher.

So what to do about this? Well my strategy as a trader is to do nothing. I am not taking any additional trades until the market gives me clarity. If we break that resistance level, then I will jump down to a 1hr chart and see if there are any altcoins I want to trade. But I will be cautious of the quick liquidity grab scenario and not hold any positions for too long. And if BTC continues to fail at breaking resistance, then I will keep watching market structure and wait for a nice tradeable setup to appear and then share it here for all of us!

Consider this just a general PSA that you don’t need to be in a trade all the time.
Happy trading

Small rising wedge also found on TOTAL2. Adding this to the idea of BTC resistance is just further confirmation for myself to close any remaining longs for the time being

Update that the TOTAL2 chart has broken the rising wedge as seen below. And BTC is close to creating a possible change in market structure, also shown below.

The US market will open in about 2 hours after a holiday on Monday, so I am cautious of any volatility that this may be, but at this time I am favoring short-term short positions. If I find any short positions that I want to share, they will be shared on a new post.