Bitcoin is likely to test the 78K low this week as implied by the lower high (see arrow) established on the previous Monday as a result of the "strategic reserve" news. As I specifically pointed out during my stream, that kind of swift rejection of "positive" news is a very bearish sign. IF 78K breaks, the next broader support is the 73K level (all time high before the election). In my opinion Bitcoin is NOT long term bearish YET, and there are plenty of opportunities to participate on all time frames. The key is you MUST know your levels the type of trade potential they imply.
NOW you may better understand why I warn people about investing into highs. The 95K to 105K was a HIGH risk area for longs yet everyone was calling for Bitcoin 200K. That is human nature and the typical retail investor cycle. Someone was selling at those highs and retail let them out while assuming ALL of the risk. We are now at the part where the retail gets fleeced. NOW is the time to be interested and enthusiastic to be accumulating, NOT 105K. The wave count ALONE, which I wrote about, at least offered insight into probability of the election rally continuing higher (See Wave 5 on my chart for months).
For swing trades, watch for 78K to be tested for a potential double bottom formation. IF price breaks 78K, watch for the area between 78 and 73K for a reversal pattern (see illustration on chart). Either scenario requires strict confirmation like specific price patterns on this time frame or 4H.
The 80K to 70K area is an attractive location of dollar cost averaging BUT you must have a sizing strategy in place. If price manages to stay above 65K, a broader wave 4 bottom may develop which implies long term strength is still probable.
Thank you for considering my analysis and perspective.
NOW you may better understand why I warn people about investing into highs. The 95K to 105K was a HIGH risk area for longs yet everyone was calling for Bitcoin 200K. That is human nature and the typical retail investor cycle. Someone was selling at those highs and retail let them out while assuming ALL of the risk. We are now at the part where the retail gets fleeced. NOW is the time to be interested and enthusiastic to be accumulating, NOT 105K. The wave count ALONE, which I wrote about, at least offered insight into probability of the election rally continuing higher (See Wave 5 on my chart for months).
For swing trades, watch for 78K to be tested for a potential double bottom formation. IF price breaks 78K, watch for the area between 78 and 73K for a reversal pattern (see illustration on chart). Either scenario requires strict confirmation like specific price patterns on this time frame or 4H.
The 80K to 70K area is an attractive location of dollar cost averaging BUT you must have a sizing strategy in place. If price manages to stay above 65K, a broader wave 4 bottom may develop which implies long term strength is still probable.
Thank you for considering my analysis and perspective.
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Try Trade Scanner Pro for FREE: bit.ly/TSCPRO
Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
Related publications
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.