Bitcoin Morning Update – Tuesday
Market Overview:
We are in an interesting place in the market right now. Following the recent bear action, we have had a reaction off the old demand range that caused the big move all the way back in November. This is the last support before we get accepted back into the 230+ day range that we created for most of 2024.
The question everyone is asking: is this a deep higher time frame retracement, or is this the beginning of a longer-term bear trend? We will have a result in the next few weeks, but as traders, it doesn’t matter because you can capitalize either way.
Market Structure Analysis:
Bears' Perspective: Daily structure has officially turned bearish. However, weekly structure remains bullish until we see the result of price action at the 2024 range.
How to Play the Market This Week: There is a nice chance of a reaction from the position we are currently in. It is an SFP of the Friday, 28th February low, and we have seen a flip in structure, which is our usual confirmation. However, the risk-to-reward is not ideal.
If we get a notable retracement back into demand or at a 50%–85% Fib level, I will be entering a long. If you are Trader A and do not mind paying a slight premium in expectancy for the trade, that is understandable also—a long here is viable.
Key Levels to Watch:
First Obstacle: 81K – Caution should be exercised at this level.
Local Target: 84K – Breaking this level could lead to an easy liquidity sweep back to 90K.
Execution Strategy: To get an entry on this trade, we will likely see a bearish transition in fractal market structure (10m structure). When that happens, I would like to see a flip in the other direction on the same timeframe before pulling the trigger on this one.
Bearish Scenario: Right now, I am not prioritizing shorts because we are trending deeper into demand. If I were to engage in a short, it would be a simple bear range continuation scalp.
Let's see what London and New York bring today. 🚀
Market Overview:
We are in an interesting place in the market right now. Following the recent bear action, we have had a reaction off the old demand range that caused the big move all the way back in November. This is the last support before we get accepted back into the 230+ day range that we created for most of 2024.
The question everyone is asking: is this a deep higher time frame retracement, or is this the beginning of a longer-term bear trend? We will have a result in the next few weeks, but as traders, it doesn’t matter because you can capitalize either way.
Market Structure Analysis:
Bears' Perspective: Daily structure has officially turned bearish. However, weekly structure remains bullish until we see the result of price action at the 2024 range.
How to Play the Market This Week: There is a nice chance of a reaction from the position we are currently in. It is an SFP of the Friday, 28th February low, and we have seen a flip in structure, which is our usual confirmation. However, the risk-to-reward is not ideal.
If we get a notable retracement back into demand or at a 50%–85% Fib level, I will be entering a long. If you are Trader A and do not mind paying a slight premium in expectancy for the trade, that is understandable also—a long here is viable.
Key Levels to Watch:
First Obstacle: 81K – Caution should be exercised at this level.
Local Target: 84K – Breaking this level could lead to an easy liquidity sweep back to 90K.
Execution Strategy: To get an entry on this trade, we will likely see a bearish transition in fractal market structure (10m structure). When that happens, I would like to see a flip in the other direction on the same timeframe before pulling the trigger on this one.
Bearish Scenario: Right now, I am not prioritizing shorts because we are trending deeper into demand. If I were to engage in a short, it would be a simple bear range continuation scalp.
Let's see what London and New York bring today. 🚀
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🎯JOIN ONLINE BOOTCAMP:
WHEN? Last Sunday each month!
tradejournal.co.uk/bootcamp/
🎯Join Discord Community: discord.gg/SFmbjseS89
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.
🎯BOOK 121 TRAINING MASTERCLASS: tradejournal.co.uk/book-1-to-1-master-class/
🎯JOIN ONLINE BOOTCAMP:
WHEN? Last Sunday each month!
tradejournal.co.uk/bootcamp/
🎯Join Discord Community: discord.gg/SFmbjseS89
🎯JOIN ONLINE BOOTCAMP:
WHEN? Last Sunday each month!
tradejournal.co.uk/bootcamp/
🎯Join Discord Community: discord.gg/SFmbjseS89
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.