Hello everyone, the price of Bitcoin (BTCUSD) recently gave us the first signals of a possible short-term trend change, with the secondary trend leaning towards a price correction after this huge run. We're keeping in mind that the daily and weekly chart is looking for a cool-off time, with the RSI leaving the overbought territory and the momentum getting smaller. The primary trend is still upwards if we look at the monthly chart, and we also want to keep in mind, that surprises always occur in the direction of the primary trend. In this case, we want to be prepared for a sudden price pop throughout the month.
In this trading idea, we are looking at the hourly chart, where we can observe the trend-change signals. First, we saw a strong rejection at the supporting trendline, that took us to the new all-time high. While we are looking at a downwards trend, we want the price to make lower highs and lower lows, as described in my previous idea
This scenario took place, with the price dipping even further - followed by a strong increase back to the resistance trendline. Now we are looking at a very interesting sign of weakness or strength, depending on what side you're playing. A fakeout describes a sudden move of (in this case) the bulls in order to bring the price to the next level. But the bears were strong enough to bring the price back to the trend. This event took place within an hour and is a great example of how aggressive sellers can act on the market.
Throughout the upcoming weekend, I'm expecting the BTCUSD price to move along the resistance line with lower lows and decent volatility. The upcoming week could be interested in terms of the price frequently pumping on a monday. Therefore, i have some buys orders placed at the green zone, which could act as a good entry for many more traders positioning in the next hours & days.