Bitcoin: The Perfect Support Zone for Buying

What if the price breaks the support zone at 8000.00 level? If so, we will get another strong bearish signal confirming the further falling. The buy opportunity won't give us profit this time, and we will have to exit from long positions using stop-loss orders below the local swing lows. If you don't understand what I'm talking about, please read my previous post about Bitcoin. It is good time to do it. You can find this post in the related ideas.

If the price breaks the support zone and moves below 7700.00, it will be a strong bearish signal. Sellers will show us their strength and wishes to reach the bottom at 6000.00 level. The support at this level will be the best zone for a reversal and new trading opportunities. Why?

If we look at the daily chart, we will see that the price moves in the borders of the descending price channel. Now the price is at the middle line of the price channel. But if we get the breakout, the next target will be the bottom line of the channel. If we combine this line with 6000.00 strong support level, we will get the perfect support zone for the reversal. Based on confirmed reversal signals, we will be able to buy for the medium and long term trading.

As for now, if you have active buy trades, think about possible exit below 7700.00 level. If you have an exact plan based on your trading strategy, you must follow it. I don't advise to open short trades in the current situation. Crypto markets are not good for shorting.

So, we have only two possible trading opportunities - the 1st is based on the previous trading idea. The 2nd one will be based on a reversal signal from 6000.00 bottom.

And what do you think about the further market movement? What do you expect from Bitcoin? Share your ideas in comments!