The price of Bitcoin has dropped since yesterday and it’s testing support area of $7,855 – $8,000.
This is the first potential zone for a reversal and we should expect to test it a few times, on lower timeframes, before establishing a solid support here.
When the first zone doesn’t hold, and bitcoin starts moving downwards, it’s time to take a look at the next potential zone for a reversal. That is formed by support zone of $7,490 to $7,749 levels, 0.382 fib level and by MA100. This is slightly stronger support than the first zone and has a higher chance for reversing from here.
The market is looking for a small term bounce on the 4h chart as it starts forming a bullish hidden divergence which is supported by RSI.
I locked in some profits that yielded me 36% profits since my first call, while other were calling for $4.500 targets.
When the trend is intact (bullish) and the sentiment remains bullish, the support levels are more likely to hold and break through resistance easier. Bitcoin is looking for a higher low formation which is a main element of an uptrend consisting of two things: higher highs and higher lows. This is giving us an opportunity to find a potentially good reversal level and is why it’s important to wait until the opportunity reveals itself and have some patience.
In the longer term perspective, the price has to take down the MA100 before bitcoin is able to move higher.
For now, I’m waiting until the daily candlestick closes and and continuing to monitor for a potential candlestick patterns for a reversal/retrace.
Different strategies can be utilized at these levels.
-> You can buy the breakout or retest of the breakout (with confirmed signals)
-> Find optimal reversal areas to enter (with confirmed rejection signals)
Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information, or courses let me know and I’d be more than happy to help you!
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
My list of trading tutorials:
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Telegram – http://t.me/YarrPiratez Crypto Signals & News
Telegram – http://t.me/YarrChat Captain’s Crypto Cabin
Trade altcoins – https://www.binance.com/?ref=10803871
Tradingview – https://www.tradingview.com/u/yarr/
Also published on Medium.