Bullish Reversal Bitcoin 28K?
Bitcoin finds support off the 25K support area as I have been writing about for weeks. On Thursday I sent a note to my members pointing out the inside bar development. As a result some of them took the swing trade long (almost 1K points in profit). The take profit area continues to be in the 28K resistance area (R:R should be around 1.5:1). There was absolutely no reason to short this in the 25K area on this time frame.
The swing trade idea is based on the broader price structure which continues to remain bullish. The 25K area serves as a higher low support within a broader bullish trend. As long as this holds, I will anticipate higher prices over the near term. Higher lows often lead to higher highs and at this magnitude, that can translate into a push into the low 30Ks (this can take weeks to play out). This is NOT a forecast, it is a basic expectation in light of the information available now.
Interestingly enough, my trade scanner is more likely to call Bitcoin short which has been profitable in recent weeks, but would be a low probability idea in light of the bigger picture.
Signals that are based on smaller time frames carry less weight than signals on larger time frames. You need to be able to separate the two in order for your trades to have a better chance of a positive outcome.
If you missed the swing trade long, the next best thing to do is WAIT for a potential retest of support. It may or may not appear. This setup can develop in the form of a double bottom followed by a confirmation candlestick pattern. If I see it, I will share it.
Overall, it is important to keep in mind, the markets in general are in a lower volume season. Especially now that we are getting close to the next big holiday in the US. Markets can still move, but often trade ideas and setups can be very slow to develop. If anything you want to avoid taking too many trades, forcing trades, and clinging to opinions. Remember all that SEC drama a week ago? Neither does anyone else.
Thank you for considering my analysis and perspective.
The swing trade idea is based on the broader price structure which continues to remain bullish. The 25K area serves as a higher low support within a broader bullish trend. As long as this holds, I will anticipate higher prices over the near term. Higher lows often lead to higher highs and at this magnitude, that can translate into a push into the low 30Ks (this can take weeks to play out). This is NOT a forecast, it is a basic expectation in light of the information available now.
Interestingly enough, my trade scanner is more likely to call Bitcoin short which has been profitable in recent weeks, but would be a low probability idea in light of the bigger picture.
Signals that are based on smaller time frames carry less weight than signals on larger time frames. You need to be able to separate the two in order for your trades to have a better chance of a positive outcome.
If you missed the swing trade long, the next best thing to do is WAIT for a potential retest of support. It may or may not appear. This setup can develop in the form of a double bottom followed by a confirmation candlestick pattern. If I see it, I will share it.
Overall, it is important to keep in mind, the markets in general are in a lower volume season. Especially now that we are getting close to the next big holiday in the US. Markets can still move, but often trade ideas and setups can be very slow to develop. If anything you want to avoid taking too many trades, forcing trades, and clinging to opinions. Remember all that SEC drama a week ago? Neither does anyone else.
Thank you for considering my analysis and perspective.
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Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
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