Bitcoin; no bullish impulse (reversal) yet.
Updated
Hi guy's, we saw a minor bounce higher for Bitcoin but that is not enough to call it a reversal sign (yet). It is not a bullish impulse on daily- 4hr - 1hr time frame. This does not mean it can't go higher from here, it means that we need to wait and see for a little longer. If we make a minor correction (indicated by means of that small arrow lower in the chart) we can trade the continuation higher of this bullish minor bounce and take it from there. We simply need too many candles from here before being able to call it a bullish impulse of whatever degree. Timing is key in the market and my style is not to trade small moves so keep that in mind when interpreting my charts.
Note
I received some questions regarding what I determine to be a reversal. I am looking for a reversal to take out 20.000. However, we need a bigger degree reversal than what we see so far (the fact that we did not see that yet most likely means price will come back down before it will make the real move higher).
Therefore we take it step by step because giving potential patterns long term will bias more traders than help them in my experience.
First possible trade we called was:
'If we make a minor correction (indicated by means of that small arrow lower in the chart) we can trade the continuation higher of this bullish minor bounce and take it from there.'
We saw that minor 3 wave correction followed by a bullish continuation. Key to understand is; so far, that minor move higher is only a continuation of that minor bullish leg from 9200 low, not a reversal sign all together yet.
So calling potential trade set-ups is what I do and by managing them accordingly you are able to stay in pretty much all winning trades regardless what the pattern will be. (Remember my first call for that move lower. That short resulted in more than 6/1 risk/reward)
The following charts show an example of two high probability scenario's still on the table., none of them are a set-up yet for the long term bullish continuation.
Note
Hi guy's keep in mind that I said; 'we have not a bullish impulse reversal (yet)'. Short term we had that minor buy continuation trade last week as described. Then I updated the chart after that minor continuation and showed that it still did not mean anything significant. We had basically 2 scenario's as you can see in the previous chart. I executed based on that plan for a short term sell. This position is currently at break-even. Let's see what's next but understanding fractals is key in understanding when to expect a reversal. I will therefore update once things start to move and try to emphasize when the real move is most likely about to happen.
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.