Hello everyone.
This weekend I am back to talk a bit about BTC.
In my previous post, I announced a take profit due to signs of weakening prices.
This post doesn't have much new, just analyzing a bit about the signs that the price is still on a downward trend.
- What is wash and rinse? It is a sweep and wash away the stop-loss orders of the Short or Long positions that are placed at the old peak and bottom areas. Here it is a short sweep.
Why is it important? Because after a wash and rinse, the whale will push the price strongly in the direction they want.
- Second: The price cannot break through resistance levels.
- Third: The price structure is creating lower highs and lower lows.
So if entering a position, you should prioritize short positions, and the stop-loss should be set at the price level that has been swept through. Of course, I will not enter here because the stop-loss area is too small and there are not enough signals to enter a position. This is just a sign of weakening prices.
However, let me tell you some things you may not know. BTC is a very small market, extremely small, the whales in BTC are just small fish compared to FX. How small? To put it in perspective, one year of trading in Crypto (not counting BTC alone) is only 1/3 of the daily trading volume of FX.
Therefore, BTC prices are very easy to adjust, which is why BTC often has very long wicks. And if you are trading BTC, you should only choose to trade on larger timeframes like H4 - D1 - W1. Especially if you are completely new. So with BTC, be patient, be careful, and don't be greedy. Good luck.
P/s: Here’s a reminder of the trade I closed in the previous post.
