Bitcoin gets enough fuel for the next move
Hello traders,
The price of bitcoin has clearly formed a range between $8400 and $10000. It seems that many retail traders are awaiting the next price dump and this idea is spreading accross the internet. My current view on the market is as follows. We are seeing a clear consolidation in the above mentioned range with a couple of strong sell-off marked with black arrows in the image. I am interpreting this as the profit taking from opened long positions from $4000-$5500 levels.
The interesting thing is that the price did not drop below $8000 and instead the price formed higher lows. I am personally biased toward the breakout above 10k and a continuation to 14k. First of all, it is very likely that the sell-off during this month was taking the profits from long positions on futures and accumulating a long position for the next bullish move. Second, due to the length of accumulation and the third approach of breaking above 10K, I believe that very soon we might see this breakout.
If we drop below 8k, I would not rush into the trade unless it falls withing your edge and the risk-reward ratio is favourable. In that case, the buy zone for me is still at around $6000-7000.
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GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2% of your account per trade
2. Look for a Risk-Reward Ratio of at least 2:1
3. Always use stop-loss
4. Do not FOMO
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so, please do not follow it if you are in doubt. DYOR!
The price of bitcoin has clearly formed a range between $8400 and $10000. It seems that many retail traders are awaiting the next price dump and this idea is spreading accross the internet. My current view on the market is as follows. We are seeing a clear consolidation in the above mentioned range with a couple of strong sell-off marked with black arrows in the image. I am interpreting this as the profit taking from opened long positions from $4000-$5500 levels.
The interesting thing is that the price did not drop below $8000 and instead the price formed higher lows. I am personally biased toward the breakout above 10k and a continuation to 14k. First of all, it is very likely that the sell-off during this month was taking the profits from long positions on futures and accumulating a long position for the next bullish move. Second, due to the length of accumulation and the third approach of breaking above 10K, I believe that very soon we might see this breakout.
If we drop below 8k, I would not rush into the trade unless it falls withing your edge and the risk-reward ratio is favourable. In that case, the buy zone for me is still at around $6000-7000.
=============================
GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2% of your account per trade
2. Look for a Risk-Reward Ratio of at least 2:1
3. Always use stop-loss
4. Do not FOMO
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so, please do not follow it if you are in doubt. DYOR!
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