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Bitcoin to $42k? Decision time is upon us.

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
A lot of people have been on the losing side the last few days and you might be left wondering where to now? The path is starting to look clearer but the next few candles are very important. Right now, we are at decision time.

-When Bitcoin started its retracement it tested the 100EMA, but the sell pressure was too strong and this level could not hold.
-It then moved down to test the 200EMA which looked like it was going to hold BUT the previous lows had not been tested. There would be a number of stop losses in place here so it is a logical place for the price to move to.
-The price then swept the lows, which was not unexpected for us, then moved up to test the 100EMA.
-So far, it looks like the selling pressure it too strong for the 100EMA to hold HOWEVER there is still a chance for price to bounce from here.

BULL IDEA
-Price is currently sitting on a key pivot area above the 200EMA, and RSI is sitting on a diagonal support (good confluence)
-If price flips the 100EMA to support that is a good sign of strength
-Because the lows have already been swept, the price should start moving to the previous high

BEAR IDEA
-The 100EMA has been tested a number of times and is not holding.
-If RSI breaks the diagonal trend line , price will continue to fall
-The previous lows have been swept HOWEVER there is an area of high demand that is untouched. When the lows were swept the buy pressure was strong enough to quickly push the price back up, however as price moves down again this buying pressure will be reduced.
-This leaves us with a key demand zone that is untouched and has a large amount of liquidity.
-If the 200EMA does not hold, fully expect the price to retest the demand zone .

Watch the candles, pick your side.
Your risk, your reward. This is not financial advice.
Happy trading.
Comment: Clean re-test of the pivot line. Remaining bullish as long as price holds above the 100 EMA.

Comments

Nice chart
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ForgeTrades MoneyMakerTrade
@MoneyMakerTrade, Thanks!
Reply
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