Bitcoin: What's Going on and How to Trade
Updated
The price made an amazing upward movement after the breakout above 20 000$ resistance! We have a new ATH, and we should be ready to see a pullback. It is obvious as there are no markets which can move in one direction all the time.
The question is, where buyers will start fixing their profit? Will it be at 24 000$ or at 25 000$? Or maybe the price will continue the upward movement because of the hype and reach 30 000$? We don't know exactly right now, and we have to watch for the price action at round numbers, searching for bearish setups.
If we look at the 4H chart, we can see that the previous bullish candle made a new high at 23750$. If the next bullish candles can't update that high, it will be possible to think about a reversal with the further downward movement.
How to trade?
The 1st idea can be based on an attempt to catch a pullback. The price reversal from round numbers and bearish signals will be able to give such trade opportunities. But you must understand that shorting in such markets requires a lot of knowledge and experience. It is a risky trade as you have to trade against the main trend. But it is a workable option.
The 2nd idea is to use pullbacks in any timeframes combined with bullish setups to join the main uptrend. This option looks much more logical and workable for a wide range of traders. It is not so risky as the 1st option, but anyway, it requires knowledge and experience as well.
And what is your trading plan for this market? Please, share in comments!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The question is, where buyers will start fixing their profit? Will it be at 24 000$ or at 25 000$? Or maybe the price will continue the upward movement because of the hype and reach 30 000$? We don't know exactly right now, and we have to watch for the price action at round numbers, searching for bearish setups.
If we look at the 4H chart, we can see that the previous bullish candle made a new high at 23750$. If the next bullish candles can't update that high, it will be possible to think about a reversal with the further downward movement.
How to trade?
The 1st idea can be based on an attempt to catch a pullback. The price reversal from round numbers and bearish signals will be able to give such trade opportunities. But you must understand that shorting in such markets requires a lot of knowledge and experience. It is a risky trade as you have to trade against the main trend. But it is a workable option.
The 2nd idea is to use pullbacks in any timeframes combined with bullish setups to join the main uptrend. This option looks much more logical and workable for a wide range of traders. It is not so risky as the 1st option, but anyway, it requires knowledge and experience as well.
And what is your trading plan for this market? Please, share in comments!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Note
In spite of the upward movement, I could close such a short trade with a good profit. Do you need proof? I guess you know where I published the screenshot. 
Disclaimer
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