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$btc

What after 66k? That's right, after closing a lot of long exposure, I am slowly adding some countertrend short exposure again here.

For the record, can we get three wins in a row again?

Now before you read the title and immediately copy my move, know that there is time for this coming short to play out. So I suggest to read the post to set expectations first. No confidence, no trade, very important.

Context

Context first, for the ones who are new, but also the ones who have been around, context matters a lot.

The best practice before setting expectations to the future, is to refer to recent past first on all timeframes. Context matters. Especially when a major target such as 66k hits. How it hits, changes the meaning of it hitting.

Recently, we ranged for a very long time sub 60k, and had a slow move up close to 66k, not hitting it, followed by a final quick burst from sub 63k (62.5k) to finally going north of 66k.

To get there was a process, lots of traps formed, even all the way up to the final move on July 15th which fell just shy of 66k. We shorted it back to the NYO pico low, our infamous cat and mouse game of recent past.

We trapped the mouse and brought home 66k. It secured us two wins in a row again, with this trade, we are aiming to get a third win in a row for obvious reasons (NFA).

Overall, what just happened, and the entire move to 60k, is classic major liquidity play, of setting traps until finally hitting a major liquidity level.

Major liquidity targets don't get hit, they are reached in the form of a trap first, before clearance so this indeed confirms that 66k+ was a major liquidity target.

And the final move to it, was a rather swift move. That is our context, and already gives clues to what next.

More context, is the fact that July has grabbed June's low, before reaching higher, it hasn't done it without grabbing June's low, which tells us the intent of July's end of month PA is different, it tells us a weaker end than if June's low wasn't taken, and it tells us June's midpoint (66k) is also of more importance than if June's low wasn't taken. That's added confluence to the expectations of July's end.

So overall, context gives us reasons to at the very least, not be overly bullish here north 66k+. Is it a short position? Not yet. Can't just trade on "vibes" and context alone. We're going deeper.

Biases

Next, are biases. Are they still the same? What are my directional expectations?

Weekly bias

My weekly bias remains: 60k region is the bottom, I have been and still think the bears are wrong, and this move to 66k+ only solidified the 60k region as a bottom, where the daily range extends and builds more liquidity. So I still think we don't see sub 50k, that remains.

It not changing, is only logical, a daily target hitting, doesn't mean a weekly bias changes, it means at most, a daily bias changes if all conditions of the target hitting fulfil.

Daily bias

And since it has, and since this was a major target, my daily bias indeed now has changed. It's no longer bullish, because indeed my daily target of 66k has been hit.

It's cautiously bearish now. I say cautiously, and that's a keyword, because we are in a weekly regime which imo bottoms us out. Which means that my bias isn't permanently bearish here on the daily timeframe nor is it bearish for a long time. It's cautiously or "countertrend" bearish. A weekly bottoming regime is not a time to attach a heavy bearish bias on the daily against the trend, and it explains why this isn't a heavy short either, it's a lighter one.

And that positioning here, goes in lockstep with the mindset "don't gamble away your profits straight away". We just scored major gains at 66k closing 3 longs at the same time (except runners), no need to gamble them away with large overly confident positions.

Hourly bias

Of less importance, but this bias can help local impatience. My bias locally, is still a range/slow pa here. Which supports why I think there is still time for this move to play out.

Magnets

Next, are magnets. They need to support our bias. Weekly magnets: none below. Last one was 60k, that's cleared, a long time ago already (since Feb).

Daily magnets are present: we have poor lows on the TPO charts, both locally and still lingering in the sub 63k region as well. Keeping in mind, poor lows on their own, not a guaranteed magnet, especially not in a weekly bottoming regime, but they ad to the overall confidence.

Finally, the weekly open untapped, you already know what that means.

Further confluences and timing

Furthermore, we are in the lower high region (LH region) of June 15th high, classic place to expect rotations to occur.

Added to that, we have mmd with $eth, I'm also going to leave no further comment to what that means, long term followers know, just ask them in the comments.

And finally, we have FOMC meeting to the 29th of July. Also no need to express what that means. Type in FOMC reversal in my post history search function, and you know.

Summary

In short, I went short here , no pun intended. We just hit our major 66k liquidity target, the target we have waited for, for a very long time.

The way we reached it, combined with the confluences, which are quite a few, are enough to expect some digestion of the move up that just happened.

We are trying to capture that. Not in an ultra bearish way, but in a cautious, against the trend way, with still enough potential to make good money type of way.

So keep in mind, the decision of this trade is on the edge. Not every predicted/expected move should be traded. Some aren't worth it since they have lower tail reward. There are no guarantees, and I sometimes get it wrong too. This is one of them. Although FOMC reversal can offer bigger moves, and $eth mmd can offer resistance longer than people are confident on.

So label this very much as a countertrend short attempt, one worth taking. And adjust your size to what your tolerance suggest is good for countertrend plays like this.

Enjoy, plan is given, outlines are clear, and over time, I will create more posts, reminders and also sentiment reads supporting this countertrend thesis.

But for now, I just want to pioneer this pullback idea, in case we get copied or ideas get pushed around, to have this as a reference to be "the first", etc etc.

Per rule of credit where due, but also because being prepared early is good. Being prepared early is important.