BTCUSD.P trade idea - 4H Ichimoku levels
Updated
Here we analyse BTCUSD.P.
Price action up until this point still looks rather corrective. This is supported by the 4H Ichimoku levels drawn in the chart. We trade at the zone of resistance, while the zone of support is found below the current swing lows. Unless we see a definite and powerfull break of the zone indicated, this trade idea is in our opinion still valid.
What do we see?
Bitcoin made a higher high, breaking above the zone (17.1-17.2k). However, RSI(14) showed bearish divergence, a higher high in price corresponding with a lower high on the RSI. Volume on the push up was also not bullish.
On the push down that followed, we did see an increase in volume. Furthermore, we made a lower low on the RSI. These observations combined indicate that a definite revearsal could be in for Bitcoin.
What do we look for?
If price comes back to the zone, there are two scenario's possible:
(A) we'd be looking for a powerful break of the zone upwards (momentum increase, high volume)
(B) we look for a liquidity grab above the zone followed by a continuation of the down trend
We set our alert to $17.080 and trade the reaction of the zone. In case of a rejection, this is the only position where we want to enter a short. If we miss it, we sit on our hands and wait for long opportunities (!).
Remember: this is just an idea, NOT financial advice. Please do NOT take this trade, as it may run into a loss. Only take trades that fit YOUR plan and/or risk tollerance. If you did like this idea consider giving it a boost. Happy trading!
Price action up until this point still looks rather corrective. This is supported by the 4H Ichimoku levels drawn in the chart. We trade at the zone of resistance, while the zone of support is found below the current swing lows. Unless we see a definite and powerfull break of the zone indicated, this trade idea is in our opinion still valid.
What do we see?
Bitcoin made a higher high, breaking above the zone (17.1-17.2k). However, RSI(14) showed bearish divergence, a higher high in price corresponding with a lower high on the RSI. Volume on the push up was also not bullish.
On the push down that followed, we did see an increase in volume. Furthermore, we made a lower low on the RSI. These observations combined indicate that a definite revearsal could be in for Bitcoin.
What do we look for?
If price comes back to the zone, there are two scenario's possible:
(A) we'd be looking for a powerful break of the zone upwards (momentum increase, high volume)
(B) we look for a liquidity grab above the zone followed by a continuation of the down trend
We set our alert to $17.080 and trade the reaction of the zone. In case of a rejection, this is the only position where we want to enter a short. If we miss it, we sit on our hands and wait for long opportunities (!).
Remember: this is just an idea, NOT financial advice. Please do NOT take this trade, as it may run into a loss. Only take trades that fit YOUR plan and/or risk tollerance. If you did like this idea consider giving it a boost. Happy trading!
Trade active
We managed to take the short at the orange zone, $17.130. We added to the position via a stop market order below the support area of 16.9k (ish). Profit target top of the greeen zone 16.7-16.5k. We expect price to penetrate the zone towards 16.5k (ish). A break of the zone, in our opinion, would strengthen the possibility that we are in an ABCDE-correction as indicated in the trade idea above.
Remember: this is just an idea, NOT financial advice. Do NOT take this trade, as it may run into a loss. Only take trades that fit YOUR plan and/or risk tollerance. If you do like this idea consider giving us a boost. Happy trading!
Note
We're now trading at the top of the channel and will soon know whether this idea is invalidated (break out to higher targets) or we're going to target lower lows. Happy trading!
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