In this daily timeframe Bitcoin chart, I am taking a look at the current movement, and where we are at on the volume and momentum side to see if we can sustain this uptrend.
I am of course on a bullish bias, but you can never discount the possibility of a break of trend, so you always have to look at both options. Trading is a game of probabilities and statistics. That being said, things can only go up so long in the markets before they need to recorrect.
The past couple of weeks we have been in an uptrend, with some time in a bit of a consolidation period. Looking as of now, the price is knocking on the door of 40K and many are calling for a break above. If this happens I want to see 40K break, then get tested as support. This support/resistance flip is nothing but bullish and would be a great time to open a long swing trade, just in my opinion... haha... Not financial advice of course... The target of the bullish move would be to the 47K-48K level where the next major supply area is sitting. Not saying that will happen this week, but is my eventual target for the next big swing move.
So now for the bearish side of things...
If we do not break 40K and end up knocking our head and heading lower, well, the next major demand zone to catch would be around the 32K level. We may not make it that far, but I am sure that there are some big players that want some Bitcoin at lower prices. We have previously broken that level of resistance on this uptrend, so it's a good level to come back and test to find support. If not, the next big level is 24K... I mean, doesn't matter to me, because I will be trading short in this situation anyway, so how low can you go? LOL.
I am just following the prompts too from the Logical Trading Indicator which helps me keep a level, mechanical head in my trading.
Let me know what you think of this idea in the comments and thanks for stopping by!
I am of course on a bullish bias, but you can never discount the possibility of a break of trend, so you always have to look at both options. Trading is a game of probabilities and statistics. That being said, things can only go up so long in the markets before they need to recorrect.
The past couple of weeks we have been in an uptrend, with some time in a bit of a consolidation period. Looking as of now, the price is knocking on the door of 40K and many are calling for a break above. If this happens I want to see 40K break, then get tested as support. This support/resistance flip is nothing but bullish and would be a great time to open a long swing trade, just in my opinion... haha... Not financial advice of course... The target of the bullish move would be to the 47K-48K level where the next major supply area is sitting. Not saying that will happen this week, but is my eventual target for the next big swing move.
So now for the bearish side of things...
If we do not break 40K and end up knocking our head and heading lower, well, the next major demand zone to catch would be around the 32K level. We may not make it that far, but I am sure that there are some big players that want some Bitcoin at lower prices. We have previously broken that level of resistance on this uptrend, so it's a good level to come back and test to find support. If not, the next big level is 24K... I mean, doesn't matter to me, because I will be trading short in this situation anyway, so how low can you go? LOL.
I am just following the prompts too from the Logical Trading Indicator which helps me keep a level, mechanical head in my trading.
Let me know what you think of this idea in the comments and thanks for stopping by!