Bitcoin - Let the Cards Play Out

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
After a couple weeks of bitcoin' slowly grinding to the upside, bitcoin' failed to hold the bullish trend line and is currently testing support at the 0.382 retrace of the bullish swing at 6436.  This is the initial support level which is shallow, and not a level a conservative trader would be looking for a long trade.   This is where patience is crucial, and though we have not posted a trade in a while, there are a few levels we are looking at for a bullish reversal and potential swing trade setup.

Bitcoin' failed to break the 6850 level which was the previous high in the short term.  This failed high is not to be a concern as long as the previous low of 5755 remains in tact.  What we are looking for is a series of higher highs and higher lows to provide further evidence we are actually seeing a bullish reversal in the broader perspective.   A bottoming structure is starting to play out with the formation of an inverse head and shoulders , often indicative of the market bottom and a potential bullish rally.  Again the formation of the head and shoulders is not as important as the structure and levels it forms at.

Ideally we would like to see bitcoin' pullback to the support zone between 6008 and 6186 where a bullish reversal would trigger a swing trade.  This would be an area that sets up nicely for the more conservative trader.  Shallow support is found at 6436 and 6305 which could also setup for a bullish reversal but this type of trade would be for a more aggressive trader that can make decisions in real time, in the event the structure falls apart quickly. 

Initially 7006 is the first resistance level to break through.  This is the 0.618 retrace of the overall bearish swing starting in early June.   There are two levels in the broader term that are important to break through 7375 and taking out the June high of 7780.  As a longer term investor the 7780 level is the key level in my opinion.  A break of this level is only one hurdle, but sets up nicely for a rally towards 10k. 

There will plenty of trade opportunities once the bull market resumes and a potential trade setup in the near term.    As long as the June low holds (though we really want to see 6000 hold) we are just monitoring the market and allowing the cards to be dealt before making a trade.  These trades provide opportunity to increase the return on our overall portfolio which will be posted on S.C. along with our core portfolio which is already posted. 


Good clear chart. Especially helpful is the labelling of the various support zones, as shallow, support, and major. Keep up the great work!
what did I say ;)

Look at this guy!
+1 Reply
Kool_Keith Koci_cz
@Koci_cz, Wrong
Kool_Keith xuanhaimmoer
my view BTCUSD
Kool_Keith DatTong
@DatTong, Maybe
1D resistance rejection and bearish reversal on 4H. The outlook is more bearish:

+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out