Buy the First Pullback in Bitcoin
Its been awhile. I haven't traded due to personal reasons but had a comment to make since I noticed people calling for a deep pullback.
Usually after a huge move like this, people think bitcoin retraces and think about shorting it because support is so much lower so they naturally try to short or look for deep pullbacks.
Bitcoin doesn't normally give you that.
This was about as strong of a move as you'll see on a 4H chart. Notice how the candles all stayed small. No huge candles, no big wicks. Very controlled due to consistent buying.
Expect a shallow pullback and then higher high. After you get that move higher, its more likely to get a deep pullback but not necessarily. I'll try to post examples of this in the past. But chances of 20-30% pullback of the move are more likely than 50-60% or lower. About 85% of the time you get a shallow pullback and higher high.
Its trading so anything is possible AND we still have election news that can totally change this so no guarantees of course.
Good luck.
Usually after a huge move like this, people think bitcoin retraces and think about shorting it because support is so much lower so they naturally try to short or look for deep pullbacks.
Bitcoin doesn't normally give you that.
This was about as strong of a move as you'll see on a 4H chart. Notice how the candles all stayed small. No huge candles, no big wicks. Very controlled due to consistent buying.
Expect a shallow pullback and then higher high. After you get that move higher, its more likely to get a deep pullback but not necessarily. I'll try to post examples of this in the past. But chances of 20-30% pullback of the move are more likely than 50-60% or lower. About 85% of the time you get a shallow pullback and higher high.
Its trading so anything is possible AND we still have election news that can totally change this so no guarantees of course.
Good luck.
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There are few that didn't work. One in particular was a big move that was last October with only a handful of 4H candles with the last candle being a $1700 move that ended in a massive $1000 wick. Note
Trade is closed.
I bought the dip all the way down from $15500 to $14600 and averaged 15k and sold now at $15900. This was the first pullback and satisfied the new high. My big concern is all the failed 4H candles could not close above resistance this week. I will look to re-enter IF we can clear 16k and hold above that on the 4H and start to build support.
Otherwise, I'll look to see what happens if dip lower. Possibly hold a large ascending triangle in the $15200 to $15500 range.
But if we have a sharp fall and can't get back above $15500 we may be looking at a deeper pullback.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.