Bitcoin Trading Journal 11/07/2018

Dominance: 43.6%

Volume: 4,052,430,000

Big down move over the past 24hrs. Bearish divergence that I talked about yesterday seemed to have confirmed and played out. I shorted ETH and LTC which saw big moves down as BTC started to fall. I however didnt expect the move to be this big and was expecting it to be closer to the 6400 range.

After the big initial push down, I began watching to see if a bear flag would form but as the magnitude of the dump was pretty big, and because prcice was sitting on the major support line, i expect a consolidation to form for at least a day.

Will be noting the time of the dump which occurred at 1700hrs +8 UTC. Previously price pumps and dumps seem to be happening at fixed times in similar patterns. This one might also play out the same. Prices are currently still facing resistance from the 12 and 26 EMA on most time frames suggesting a lack of buying pressure. Consolidation has also allowed RSI levels to cool off abit which could possibly lead to another leg down in time to come.

The TD sequential gave a perfect shorting entry on the 4hr chart and it played out to a red 9, expecting a small bounce maybe and then do again.

Bear scenario: consolidate and dump down to next support levels of 6100ish and 6000
Bull scenario: Possible bounce up to falling 12 EMA for rejection with stop loss close to swing low.