Bitcoin: Bullish Reversal Zone.
Bitcoin has broken the 60K support zone and probed as low as 53Ks. There was actually some advance warning at my previously determined 64K resistance area with a pin bar at 63,750 (see small arrow). While there is NO way to forecast the precise outcome of such a signal, it at LEAST called for adjustments for long positions (trail stop, stop to break even or take some profit). With a test of 53K many "experts" are probably bearish which is especially HIGH RISK around such a location. There are long opportunities here for both swing traders and investors.
A few things that I want to point out: there is a new buy signal in play from 57.515 (see pin bar large arrow) but it comes with enormous risk on THIS time frame (about 3 or 4K points). Not worth it if the next resistance is now the 60K area. A better way to participate is to manage risk by looking for momentum continuations on smaller time frames (with Trade Scanner Pro). One scenario may be the swift recovery (not on this chart) where price gets back above 60K only to establish a higher low around 60K.
The more ideal scenario is a double bottom somewhere in the low 50Ks (see illustration). Another important observation here is the 52,300 to 56,500 (area between blue lines) represents a broad higher probability reversal zone and the large bullish pin bar confirms it. Any buy signals that appear in this area over the next few weeks will offer opportunities for swing trades. Any retest of the mid to low 50Ks also presents investment opportunities for those attempting to average into longer time horizon positions (this requires a specific plan).
The mistake to avoid is to get bearish near range lows. 56K was the range low and was BRIEFLY broken only to be recovered. For me this means the range low is still intact, and a range low within a broader bullish trend is a location to consider longs, NOT become bearish (at least on this time frame).
Thank you for considering my analysis and perspective.
A few things that I want to point out: there is a new buy signal in play from 57.515 (see pin bar large arrow) but it comes with enormous risk on THIS time frame (about 3 or 4K points). Not worth it if the next resistance is now the 60K area. A better way to participate is to manage risk by looking for momentum continuations on smaller time frames (with Trade Scanner Pro). One scenario may be the swift recovery (not on this chart) where price gets back above 60K only to establish a higher low around 60K.
The more ideal scenario is a double bottom somewhere in the low 50Ks (see illustration). Another important observation here is the 52,300 to 56,500 (area between blue lines) represents a broad higher probability reversal zone and the large bullish pin bar confirms it. Any buy signals that appear in this area over the next few weeks will offer opportunities for swing trades. Any retest of the mid to low 50Ks also presents investment opportunities for those attempting to average into longer time horizon positions (this requires a specific plan).
The mistake to avoid is to get bearish near range lows. 56K was the range low and was BRIEFLY broken only to be recovered. For me this means the range low is still intact, and a range low within a broader bullish trend is a location to consider longs, NOT become bearish (at least on this time frame).
Thank you for considering my analysis and perspective.
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