BTC on an uptrend! Re-entering the 68-69k zone.
Hello, fellow traders and friends,
we see BTC on an uptrend once again,
re-entering the 68-69k zone which has shown heavy resistance multiple times in the past.
We currently see an expected pullback,
but if BTC is to breakout the zone (which is very likely due to the US presidential election) eventually,
we might see a bull run well beyond 70k.
Although we have seen BTC respecting the resistance line of the 7-months downtrend in recent few days, the trend has not completely been reversed:
it has exited the resistance line once again.
If the price is to retreat all the way down to the resistance line,
it might rebound and gain momentum for the bull run.
we see BTC on an uptrend once again,
re-entering the 68-69k zone which has shown heavy resistance multiple times in the past.
We currently see an expected pullback,
but if BTC is to breakout the zone (which is very likely due to the US presidential election) eventually,
we might see a bull run well beyond 70k.
Although we have seen BTC respecting the resistance line of the 7-months downtrend in recent few days, the trend has not completely been reversed:
it has exited the resistance line once again.
If the price is to retreat all the way down to the resistance line,
it might rebound and gain momentum for the bull run.
Comment
And we now see a possible rebound.
Let's have a closer look:
First, we see the price rebounding after reaching the resistance line (which is now acting as a support.) - creating what could've been a morning star.
However, the momentum was not enough - causing an additional drop.
Now, we see price rebounding as it enters the red support zone.
Here are some tips that might help when trading:
1. Split positions
We do not know for sure where the reversal would take place,
so instead of ordering all at once, split your orders.
This way, even if the price fails to reach below Order #1, you'll still enter with some money.
And if the price falls beyond your expectation, that's better because then your average entry also lowers.
3-4 orders should be enough.
Same discipline applies when you exit.
So we are expecting an uptrend now - but price may still reverse again when it reaches the resistance line(black).
Nobody knows the future, it's very easy to assume the trend will continue, but we don't really know that.
Or worse, the initial reversal attempt might fail, leading to an additional downfall.
So what do we do? We split our exit.
Exit #1 is where we take our initial profit - this is the minimum profit we are willing to take.
Exit #2 is to prepare for the possible rebound. If the rebound takes place, exit all.
Exit #3 assumes the rebound did not happen at exit #2, allowing price to enter the uptrend channel.
Exit #4 is the maximum profit we are willing to take. It's the upper line of the uptrend.
Remember to stay strategic all the time.
Those exits are not in random location - take closer look at #1 and #3.
Exit #1 is where the blue trend line and the black dotted horizontal line meets.
This indicates strong chance of resistance.
Exit #3 is also based on the level that acted both as support and resistance in recent time.
Looking even further back, we notice this line was causing price actions in the past, increasing the chance of resistance even more.
If the price reaches Exit #3 but fails to reach #4, exit with the remainder.
This is how you can successfully minimize the risk and maximize the potential profit.
2. Do not look back.
You may have a target profit like I do - either by percentage or specific amount of money.
If you see you've reached the target profit, exit and do not look back.
Stay strategic and disciplined - do not look back and go, "Oh, I could've stayed longer and made more fortune."
No, just relax and be grateful - because that kind of attitude will eventually cost you a fortune in the future.
Remember, small profit is still a profit.
Comment
Exit #1 - #3 has been met.
If the price is to reverse trend and reach the lower line of the channel,
that would be our exit #4.
Comment
This will be our exit call.
Yes, I am well aware that price may move up again, but it doesn't matter.
Always stick with discipline when trading.
Comment
This is one good example why discipline is important :)
Comment
Well, it eventually reached the original Exit #4 before completely reversing into a downtrend.
We see price reacting to the 66.6k line which has shown multiple price actions in the past,
also a big action in 65.7k, which was the previous lowest close in the 1H chart.
We also see that the Inside Pitchfork is still valid, working as a support zone.
Double Top pattern indicates the complete reversal of the uptrend.
Now what do these tell us?
Despite encountering heavy resistance in 68-69k zone initially, BTC is still refusing to follow the bearish trend - however it is also struggling to climb back up, creating a consolidation.
I imagine such movements will continue at least until the presidential election of the US, where the price would either breakout or fall depending on the result.
Comment
AoC would've been a nice entry point, but it is too dangerous to enter now.
Wait for the next entry with the highest guarantee of price action.
Be patient, never gamble.
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