Bitcoin Pin Ball Back To 60K?
Bitcoin rallied off the mid 50Ks as per my illustration in my previous article and has tested the 64K resistance area. Reacting to levels within a range is typical and in these cases it is important to pay close attention to the short term price structure and relative support/resistance levels. While NOTHING works 100% of the time, this technique is how I am able to ANTICIPATE price movements consistently. Until the short term structure changes, I am looking for a brief retrace back to 60K followed by a reversal to a higher high. This is this expectations UNTIL the market proves otherwise by changing its structure.
For conservative swing traders this means WAITING for the retrace to place out and for an attractive support to be tested around 60K (see arrow). This level has been notable as a support and resistance for months and is likely to play a key role going forward. IF price can retest this level this week, I will be looking for CONFIRMATION in order to justify risk. This can come in the form of an inside bar or pin bar on this particular time frame.
For smaller time frames, it is possible to find lower risk entries that still have similar profit potential. To attempt to synchronize with the larger time frame and effectively mange such signals is the whole purpose of my script (Trade Scanner Pro) but it does require some experience. Either way your goal as a trader should be to be able to make effective choices with the least amount of information (and confusion) as possible.
If 60K is never tested (anything is possible), then the strength implied by such a scenario can carry price into the 66K area or higher and it can happen fast. The best way to capitalize on this is utilizing smaller time frames like 30 min or lower (day trades). Certainly not an area for beginners unless you trade on paper for learning purposes. It only looks EASY when it is a win AFTER THE FACT.
IF 60K is compromised completely, that would cancel out the bullish scenario previously mentioned. You have to be prepared for both bullish and bearish outcome because getting married to a forecast is not optimal in an environment that is MOSTLY random. Focusing on RISK and adjusting to new information (changing levels/price action) is key. If you are having a hard time in this environment, stop and question the sources of information you are consuming. The error usually begins there.
Thank you for considering my analysis and perspective.
For conservative swing traders this means WAITING for the retrace to place out and for an attractive support to be tested around 60K (see arrow). This level has been notable as a support and resistance for months and is likely to play a key role going forward. IF price can retest this level this week, I will be looking for CONFIRMATION in order to justify risk. This can come in the form of an inside bar or pin bar on this particular time frame.
For smaller time frames, it is possible to find lower risk entries that still have similar profit potential. To attempt to synchronize with the larger time frame and effectively mange such signals is the whole purpose of my script (Trade Scanner Pro) but it does require some experience. Either way your goal as a trader should be to be able to make effective choices with the least amount of information (and confusion) as possible.
If 60K is never tested (anything is possible), then the strength implied by such a scenario can carry price into the 66K area or higher and it can happen fast. The best way to capitalize on this is utilizing smaller time frames like 30 min or lower (day trades). Certainly not an area for beginners unless you trade on paper for learning purposes. It only looks EASY when it is a win AFTER THE FACT.
IF 60K is compromised completely, that would cancel out the bullish scenario previously mentioned. You have to be prepared for both bullish and bearish outcome because getting married to a forecast is not optimal in an environment that is MOSTLY random. Focusing on RISK and adjusting to new information (changing levels/price action) is key. If you are having a hard time in this environment, stop and question the sources of information you are consuming. The error usually begins there.
Thank you for considering my analysis and perspective.
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