The market forms a double top chart pattern. It does not look like the perfect example, but it can be used as a reversal chart pattern. If the price drops below the local swing low, this chart pattern will be confirmed. The market will be able to move lower to support zones at SMA200 and 4800.00. These zones will be able to stop and reverse the market upward. But if the price can break the support line and level, we should expect the falling to the main support zone at 4000.00 level where the price will be able to bounce and give us reversal signals for buying.
Alternative variant: the price bounces from the local support levels or lines and moves above the double tops. It will confirm the strength of buyers. The market will be able to move higher and probably reach the strong resistance zone at 6000.00 level within this upward movement. This breakout won't be good for buying as from the higher timeframe the market has space for the falling to the important support zone at 4000.00 level.
For those, who don't understand why there are two variants for the market movements, why there are different market movements in different timeframe - my advice will be simple, please, learn the theory. Knowledge will give you an understanding of how markets move and how to get trading opportunities from such movements.
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I should tell you one simple thing, trading signals won't make you rich if you don't know how to trade properly. I don't like the situation when any post in a trading idea format is more popular than a post includes information how to trade properly. As the post about Bitcoin is in TOP, I have to use it for promotion my tutorial which is more important! Please, support it by your comments and likes. Help novice traders to see this tutorial and start trading in the right way from the beginning
maybe i am seeing it in a different way but its Real i should say
mycryptoedge
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Nice one
DLavrov
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@marcandrecowie, thank you!
TheEWGuy
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Correction is almost over.
VaidoVeek
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I marked also breakout trade possibilities because there are not clear directional signs so, we have to wait for those breakouts which should give the short-term directions:
All the best!
ReallyMe
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The Bitcoin walks on a thin 150MA rope on the 30min chart.
If it falls below $5,200 towards $5,100, it will start crashing very soon.
In order to continue, it has to constantly move on up.
But obviously the volume and the price development are flattening,
I do not believe that it can go on like this for a long time.
ReallyMe
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@ReallyMe, In other words, whales have left the waters at 5.3k. They are stuffed for the time being. Now it's your turn, Average Joe. Buckle up. (just a theory of mine)
TradingShot
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Much respect for your work DLavrov. I agree with you that 4000 is more probable. In fact based on the MA200 cross comparison with the 2015 fractal, we may dip even lower before BTC rebounds to 6000 and above. Check it out.
Moon_Rocket_Capital
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With the daily chart showing signs of being overbought; I think you are correct in favoring the bearish movement. I have posted similar previously, and would love your opinion.
cryptozwerg
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Really good work, as usual! But to answer your question from the title: we trade it with deep pockets and tide stop loss or willingness to DCA till $1. Ah, yes, we stay away from leveraged positions as well xD Thank you for your great work!