$BTC Yesterday presented a challenging yet insightful trading day. The session began with a sharp upward price movement followed by a reversal within the first two hours. Observing this, I quickly assessed that a higher correction was unlikely, as the price exhibited a strong probability of moving downward. I waited for the gap to close and entered a well-timed short position at $94,650, employing a tight stop-loss for risk management.
However, I did not hold the short to the very bottom. I exited around $92,000, just before the price accelerated in its downward momentum. By the time the NY session began, I had already stepped away from the market, ensuring that I avoided unnecessary exposure to the unpredictable swings that followed.
Market Behavior and Observations
During the NY session, spot positions showed a notable reduction while long positions in futures increased. This combination often signals deceptive, rapid price movements. True to form, the market plunged quickly to the 38% Fibonacci retracement level, calculated from the larger movement between $62,000 and $108,000.
Staying out of the market during this volatile period proved to be a wise decision. Such sharp movements often make it difficult to execute trades manually, as stops, limits, and market-close orders may fail to trigger effectively under high volatility.
Before the NY session concluded, I identified an opportunity and opened long positions in
$BTC , $LINK, and $ADA. My rationale was based on observing that the price held above the levels that marked the splash down’s beginning and end. This suggested potential short-covering, leading to upward price movement as the session closed. Exiting these positions with a 100% ROI on high leverage was a calculated and rewarding move.
Current Outlook and Strategy
Today, the price has climbed back to the starting point of yesterday's downward movement, forming a clear rejection pattern. The absence of significant spot position increases, despite the rise to $95,000, supported my decision to open a new short. This move targets the gap between $93,500 and $92,500, with a close stop-loss to minimize risk.
Looking ahead, the strong rebound from $89,000 signals the possibility of a correction toward $96,000–$98,000–$100,000 later this week. The market structure appears primed for such a move, and I will remain vigilant for confirming signals to adjust my strategy accordingly.
Final Thoughts
Navigating the current market requires adaptability, discipline, and keen observation. The rapid price shifts offer opportunities but demand careful management of risk and positions. Stay prepared, trade strategically, and always prioritize safety in this volatile environment.
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