BTCUSD: Bearish Trend Line Encourages Test Of Low 7Ks.
Updated
BTCUSD update: Price action is some what quiet near the most recent peak. There is an inside bar now present on this time frame which can turn into a sell signal quickly. As I wrote in my report on S.C. earlier today, the bearish trend line is still in effect.
Lower highs often lead to lower lows. This market is in a tricky area. If buyers hold up, price can produce a shallow higher low and squeeze higher and break the bearish trend line.
If price takes out the 7413 inside bar low, that can invite further bearish momentum which can take price back to the low 7Ks. Based on the technical structures in place, it appears price is more likely to lean more toward the bearish side on the short term.
I am all for being bullish, but two things need to happen in order to prove this market is in a sustained rally. First, the trend line needs to be cleared. Second, the 8185 resistance level needs to be taken out. This is the .382 of the recent bearish structure.
Keep in mind price can go as low as 6904 which is the reversal zone boundary and still be in a position to reverse sharply. It is a matter of waiting for the price action to confirm.
In my earlier report on S.C., I also compare inventory building with swing trading. If this market pushes the 7K low, there will be an opportunity for both types of strategies.
In summary, at this point I am just waiting for the next swing trade while accumulating other coins for long term inventory. S.C. is where I will share the next trade idea for this market.
Lower highs often lead to lower lows. This market is in a tricky area. If buyers hold up, price can produce a shallow higher low and squeeze higher and break the bearish trend line.
If price takes out the 7413 inside bar low, that can invite further bearish momentum which can take price back to the low 7Ks. Based on the technical structures in place, it appears price is more likely to lean more toward the bearish side on the short term.
I am all for being bullish, but two things need to happen in order to prove this market is in a sustained rally. First, the trend line needs to be cleared. Second, the 8185 resistance level needs to be taken out. This is the .382 of the recent bearish structure.
Keep in mind price can go as low as 6904 which is the reversal zone boundary and still be in a position to reverse sharply. It is a matter of waiting for the price action to confirm.
In my earlier report on S.C., I also compare inventory building with swing trading. If this market pushes the 7K low, there will be an opportunity for both types of strategies.
In summary, at this point I am just waiting for the next swing trade while accumulating other coins for long term inventory. S.C. is where I will share the next trade idea for this market.
Note
BTCUSD update: When markets are slow and hesitant like this one is at the moment, the best thing to do is wait for a high probability area. At the moment, the only area I can see is the low 7Ks to 6900. It is very possible that a higher low formation appears, but there is no clear advantage to taking any swing trades in this environment. Remember, flat is a position.
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.