This uptrend line is an objective level for active traders to book the quick ~4% profit for those that reversed/shorted Bitcoin ($BTC, /BRR, GBTC, etc..) on the rally into the key 12240ish resistance yesterday. Those holding out for additional downside might consider lowering stops to protect profits or at least to entry to assure a breakeven at this point. Previous & updated 3-hr charts below.
I realize that a 4% profit is an undersized gain for Bitcoin but aside from my longer-term swing/trend shorts on the stock indices, I still favor a quick hit & run strategy while active trading through the remainder of the year as I’ve found the period between Thanksgiving & New Years to be more conducive to active trading than typical swing trading over the years.
There’s also a trading term I made up years ago that I refer to as velocity, which basically means if you can get a quick, say 4% in one day, such as on this trade, and then sit back & wait patiently for the next similar high-probability setup (which is almost always out there, it’s just a matter of how hard you look for it without forcing any trades), and then do that again, say on a weekly basis & say, going 3 for 4, using a 2:1 R/R (i.e.- losing half of what your profit would have been if stopped out), that would equate to a gain of 10%+ per month or 120%+/yr, NOT using compounding (the plus sign since there are actually about 4.3 weeks in a month, not 4, so I rounded down).