BTC has spiked higher as we expected. BTC did tested the price of $5.061. We exited all our positions and we are neutral now.
According to the H4 time-frame, we found that after the break of the consolidation range BTC did spike higher. Anyway, we found on the H4 time-frame 2 ultra big climatic bars (overextension), which is sign that buying at this stage looks extremely risky. ADX is reading is at 58, which is sign that momentum and trend are still strong. Potential downward correction towards $4.500 is possible. Strong resistance levels are seen at $5.064 and $5.770.
Trading recommendation: We exited our long position that we held from $4.070 and took profit at $4.700 with the profit of 15%. Now, we are neutral since the climatic action on the top and we are waiting for more market information's before new position.The material has been provided by InstaForex Company - www.instaforex.com