Bitcoin Trading Journal 10/07/2018

Volume: 3,718,130,000 

Dominance:43.4%

Yesterday's inside bar had a failed break with a big bull break that was shut down immediately followed by increasing bear volume and downside action. This was a good shorting opportunity from a strategy i read recently which combined bearish divergence with a false break.

Price reversal: FB+BD

Bearish divergence was seen on the 1hr MACD from the previous high of 6839.4 to last high 6820 which was a lower high, unable to overcome the 6850 resistance zone.
Price was swiftly shut down and is current finding support on the daily 26 EMA at 6640ish range forming a lower low.

Currently the new support level is at 6616 and if we break through, we look to previous lows of 6511 and 6423 on the 4hr.

I am still leaning bearish due to the decreasing volume and increasing btc dominance which signals reduced risk taking. looking for opportunities to short near resistance keeping my Stops just above the breakout level to upside.

I am also still wary that this might just be another bull flag scenario on the daily and that we might spike up through the 7ks in the next few days.

Other cryptos like LTC and ETH has had a much more significant pull back compared to BTC as well.