It is the perfect time to make mistakes, and novice traders will use this opportunity. Even these mistakes can give them profit, the mistakes will stay mistakes.
The market made a solid upward movement. If you missed reversal signals from 6500.00 and trend reversal signals from 7700.00 and above, now you have good chances to buy in the overbought market. It will look like an attempt to catch a missed train. It is a mistake. It can be profitable, but one day it will destroy your capital or give a very deep drawdown.
That's why it is better to buy before an upward movement and after corrections. We must open long positions when a market has the potential to move upward from a Fundamental point of view as well as from Technical.
If you look at the daily timeframe, you can see that the price is not far from the resistance zone formed by SMA200 and 9000.00 resistance level. RSI is at the overbought zone, and it is going to reverse. Buying below the resistance - it is another mistake. Yes, Bitcoin can break this zone easily and jump to 10 000, but it will just one more unpredictable movement. We could see them many in the past and in any crypto market.
If you missed the previous buy signals, now it is better to wait for the 1st correction movement and buy after that. The price is at another resistance zone, and it can stop and reverse the market. If you are not ready to buy at the local top, it will be better to wait for a pullback to the zone between 8000.00 and the uptrend line. Reversal signals from this zone will be good for buying. You will be able to get them from the daily and lower timeframes. Just don't forget about the right risk management.
If you have another plan how to trade Bitcoin, share it in comments. Let's discuss it!
Disclaimer! This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
That is the key ! I've been doing too much fomo and lost a lot...now I learn and I'm waiting the correction and stay in Tusd ! Good job to remind us !!
Saeed966
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Good job
Alpha_Star
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Pan out to the monthly. We just hit the resistance zone at the top of a consistent downward channel. The most probable out come is a decent to the $5900 range.
node2
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Mistakes can give you profit.. this is the statement that novice traders need to remember.
DK_Investment
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good idea and well analysed - got the same idea but I see a possible new low if the current monthly candle close under 8K