BitcoinUpdated Minor correction in bull trend for BTC.
BTCUSDAs you can see on this 15 minute chart, BTC has broken lower out of the lovely support it established during the breakout on 5/3. Hopefully it'll pick back up quickly, but let's look at three support possibilities in the meantime.A possible Head and Shoulders formation exists if we find support in the upper green box. A bounce here followed by a lower high could spell a reversal and continuation down into my second green box.
The second green box seems most likely eventually, as it is a convergence of historical support at $9600, where we saw sideways movement for quite some time two days ago, and a test of the trend line BTC established on 5/1.
Should we break below the trend from 5/3, the red line on the bottom of the chart will likely catch us. This is a continuation of the breakout from mid April and has the most sustaining power of any of these supports.
Note that this is short term trading advice, trades I have opened in this range have lasted 1-3 days and returned modest profits.
Longterm: Bullish
Midterm: Neutral
Shorterm: Bearish
Trade active
tradingview.com/chart/WhFSeNKT/As we can see, the ensuing descent has blown right through the initial bounce zone, invalidating a head and shoulders reversal and moving to a middle ground between suspected support zones.
Obviously this is a no-trade area. My plan is to attempt a long position with a tight stop if we see support in the second green box.
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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.