BitcoinShort
BTCUSD- A Look at the Weekly Structure (Part IV)
Updated
Last week was a real doozy. In one fell swoop, we have nearly done a full retrace of our previous bull run (8/13/18-8/27/18). We closed below our supporting structure (the red region), which is bad news in my opinion. We have held that structure since 6/18/18, so the fact that it has broken down alludes to a continual down trend.
The most likely top we'll see in the foreseeable future is between 6740-6900, and from the way it looks right now, with a potential upside of only 600 dollars at the moment, I don't believe our upside is attractive enough currently for the market to not want to continue downwards.
On the flip side, at the moment we have formed an inside bar on the weekly candle, so if we close the week out with an inside bar, I would feel a fair amount more confidence that we'll see upside in the coming weeks. If we close above 6440, then I'll DEFINITELY feel confident in opening a long.
Being truly honest, above all else, I would see us testing the 5600 region, which is a strong support level for us, one that we've yet to test since we've hit 20k. There's a strong chance that this region is the point we need to touch to finally break out of this bear season we've been caught in. If we fall below it, then we could see a run to 4200 at some point, but we'll worry about that when the time comes.
As always, be wise about how you invest, take your time, and don't let FOMO or FUD dictate your trade decisions. It's better to miss some upside than it is to lose unnecessary money due to poor money management. Make sure to employ a strong trading strategy, but above all else, be consistent.
The most likely top we'll see in the foreseeable future is between 6740-6900, and from the way it looks right now, with a potential upside of only 600 dollars at the moment, I don't believe our upside is attractive enough currently for the market to not want to continue downwards.
On the flip side, at the moment we have formed an inside bar on the weekly candle, so if we close the week out with an inside bar, I would feel a fair amount more confidence that we'll see upside in the coming weeks. If we close above 6440, then I'll DEFINITELY feel confident in opening a long.
Being truly honest, above all else, I would see us testing the 5600 region, which is a strong support level for us, one that we've yet to test since we've hit 20k. There's a strong chance that this region is the point we need to touch to finally break out of this bear season we've been caught in. If we fall below it, then we could see a run to 4200 at some point, but we'll worry about that when the time comes.
As always, be wise about how you invest, take your time, and don't let FOMO or FUD dictate your trade decisions. It's better to miss some upside than it is to lose unnecessary money due to poor money management. Make sure to employ a strong trading strategy, but above all else, be consistent.
Note
Make no mistake... this little bit of bullish movement isn't enough to call for a reversal. Be patient and mindful of the moves before jumping the gun on re-entry.
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.