Bitcoin: Waiting For 41K Support.
Bitcoin rejects 48K which should not surprise anyone because the 50K AREA is a major resistance. This is especially significant after a previous vertical candle which can be interpreted as too many longs were lured into a position thanks to the fear of missing out. Based on the break of the low of the previous candle at 46K, a new sell signal is in effect.
Is a new sell signal a good reason to get short? If you like to chase markets and have no regard for probabilities, why not? As many of my followers know we have a strict policy against shorting these markets. Just as the fear of missing out lures longs at the wrong times, it works the same way for shorts. The problem with the short side is you are fighting a short term bullish structure which was confirmed at the 41K break out. If another higher low develops, it is very reasonable to see a test of the 50K resistance area again during the coming week.
In these situations I prefer to go with the market, not fight it. That means I WAIT for the next support and look for a signal to go LONG. The next support is still around the 41 to 42K area (previous range resistance). IF price breaks that support, THEN we can argue that the current price structure is no longer in play. Keep in mind, Bitcoin can find support sooner (like it demonstrated at 37K).
Anyone can read a chart and come up with a trade idea, it can be learned quickly. What is HARD for MOST people is the WAITING that's involved, thanks to a complex layer of emotions, most notably FEAR. If you can't WAIT, you CAN''T WIN over time.
Opportunities are infinite in this arena. You can be wrong about potential opportunities and miss countless moves and still have your capital intact for the next opportunity. Since the majority of signals (especially on smaller time frames) are low probability, developing your WAITING skills is more likely to result in a positive outcome.
Thank you for considering my analysis and perspective, I hope you find it helpful.
Is a new sell signal a good reason to get short? If you like to chase markets and have no regard for probabilities, why not? As many of my followers know we have a strict policy against shorting these markets. Just as the fear of missing out lures longs at the wrong times, it works the same way for shorts. The problem with the short side is you are fighting a short term bullish structure which was confirmed at the 41K break out. If another higher low develops, it is very reasonable to see a test of the 50K resistance area again during the coming week.
In these situations I prefer to go with the market, not fight it. That means I WAIT for the next support and look for a signal to go LONG. The next support is still around the 41 to 42K area (previous range resistance). IF price breaks that support, THEN we can argue that the current price structure is no longer in play. Keep in mind, Bitcoin can find support sooner (like it demonstrated at 37K).
Anyone can read a chart and come up with a trade idea, it can be learned quickly. What is HARD for MOST people is the WAITING that's involved, thanks to a complex layer of emotions, most notably FEAR. If you can't WAIT, you CAN''T WIN over time.
Opportunities are infinite in this arena. You can be wrong about potential opportunities and miss countless moves and still have your capital intact for the next opportunity. Since the majority of signals (especially on smaller time frames) are low probability, developing your WAITING skills is more likely to result in a positive outcome.
Thank you for considering my analysis and perspective, I hope you find it helpful.
Try Trade Scanner Pro for FREE: bit.ly/TSCPRO
Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Tip With ETH: 0x94c9338fc3A9Ba0F1F930BF4e724C0A3EBB8437E
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.