Bitcoin's Most Important Upside Reaction Areas

Obvious key reaction areas to watch.

* one thing to note, the DAY chart is approaching the mixed 200 avg. So I'd expect a reaction around this zone of from 20,100 - 21,600 or so.

From there, we have two obvious reaction areas that anybody who trades my highly effective trading system:

• 20,187 or so - 4D key reaction level. Follow the rules outlined when trading around reaction levels and PACs
  
• RDA - 22,500 to 23,400 - 4D RDA, if the price gets here, this is the best highest probable short area for a SHORT FADE swing trade on Bitcoin.
  

I use these charts to define zones, then I drop down to 30m structure chart to confirm a FADE move. From there I typically watch the 5m and TICK charts to confirm an early change in bias. Then on confirmation of a 30m bias change I add at size on key reaction areas.


That's it. Question leave them below and I'll answer, even provide TA.

Comment:

As I write this the reaction is about a 3% pullback. The first zone had a slight reaction but it ultimately just ripped through.

There has only been one high probability fade trade. It 8:30 CST US time. Here is that area:

Other than that momentum trades are the best as it appears the next upside level is the target. I did do another idea on the long entries:

Comment:

$BTC closes above the red zone for 3-4 candles it will rip higher. If that will stick? Watch bias and momentum indicators:

Comment:

Still in the midst of the reaction to the zone. So far most LTF charts are still Bias and Momentum long (BML).

The first test is always the best, except for a double test that quickly changes BM on a 5m or 15m chart.

Few things to note. There is a CME gap to contend with, it is the Week close day so there might just be increased VOL around the 3 hours of closing.

Tomorrow is a market holiday in the US, that could mean the capital in play will just continue to push the market up, maybe to the next level of liquidations.

Comment:

Yday high hit the top of our zone and rejected.

Still the target,

I often like to a look at a 2h chart, it sometimes it provides better view of drawing VCs.

candle going up into the excess zone, and 50 of channel good standard pull back area we'd expect:

Comment:

The second zone is becoming a challenge for BTC to overcome. The trade on the table is a momentum check trade on the daily time frame.

FIrst one is 4% current price.

The next 2 are between 8-11% pullback range.

Red box outlines pullback areas.

Of note, price is below the weekly open, if that is recaptured and holds then getting more aggressive on long entries might be called for if you want to trade in this zone.

Unless something changes, this rejection zone is not going to be breached on this upward impulse, the next one will be the one to watch:

Comment:

The LONG bias and momentum continues for BTC. About to capture the 4D RDA, the case for sub 14K is getting tougher but still within the standard pullback range of BTC.

Here are the upside reaction area: