People who missed out the recent pump is likely going to take the below actions 👇🏻:
1. Adding long positions at weekly resistance (ie. now)
2. Revenge trading by shorting with high leverage (as they have missed out the entire up-move since $4k)
3. Took ALL profits on previous buy positions
Although the market is still bullish from many perspectives, there is no doubt that Bitcoin is at the weekly resistance right now. In my opinion, the best approach is certainly not the 3x actions mentioned above, but to take some profits off long positions at resistance or perhaps put a trailing stop.
💥On the weekly timeframe, Bitcoin is in a range between $10,000 & $12,000. Whether Bitcoin has the momentum to break above $12000 without longer consolidation I have no idea but, buying at the current price is certainly not the best action to take (You should always buy at pullback or on the consolidation breakout)
💥On the 4hr timeframe (as per the main chart), there is a minor support @ around $10,800. Although $10800 is a support level, I won’t consider buying at $10800 because
1) it is a minor support, and
2) it does not give an ideal risk reward ratio.
Personally, I would only consider once the market touches around $10200 followed by a change of structure. Only then I will buy on the pullback with a target of at least 2:1 risk reward. If you have not yet read my previous article on change of structure I have re-attached here.
Please do your own research.
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🔥Previous trade hit target🔥
1. Adding long positions at weekly resistance (ie. now)
2. Revenge trading by shorting with high leverage (as they have missed out the entire up-move since $4k)
3. Took ALL profits on previous buy positions
Although the market is still bullish from many perspectives, there is no doubt that Bitcoin is at the weekly resistance right now. In my opinion, the best approach is certainly not the 3x actions mentioned above, but to take some profits off long positions at resistance or perhaps put a trailing stop.
💥On the weekly timeframe, Bitcoin is in a range between $10,000 & $12,000. Whether Bitcoin has the momentum to break above $12000 without longer consolidation I have no idea but, buying at the current price is certainly not the best action to take (You should always buy at pullback or on the consolidation breakout)
💥On the 4hr timeframe (as per the main chart), there is a minor support @ around $10,800. Although $10800 is a support level, I won’t consider buying at $10800 because
1) it is a minor support, and
2) it does not give an ideal risk reward ratio.
Personally, I would only consider once the market touches around $10200 followed by a change of structure. Only then I will buy on the pullback with a target of at least 2:1 risk reward. If you have not yet read my previous article on change of structure I have re-attached here.
Please do your own research.
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🔥Previous trade hit target🔥
