"Possibly, we may get a buying opportunity but there needs to line up some criteria" - these were my words from yesterday's post and luckily, the price action has started to print out a pretty decent buy opportunity.
BTC price has made that mentioned breakout above the down-trendline, pulled from 2019. It occurred with a really powerful 4H candle which allows to trade breakouts. There is a tendency that after the breakout the price retests breakout area and from there it continues to the breakout direction.
Classical breakout trade: wait for a higher timeframe breakout confirmation (we have it, candle close is the confirmation and we have a 4H and Daily candle close above the ), buy/sell on the retest.
Currently, we have a pretty powerful retest area and criteria are lined up as they should:
1) The from 2019 high should act as support
2) The minor black dotted should add strength to the retest area.
3) levels 38% & 50%
4) 62% from another low to today's high
5) Short-term higher highs (HH) and higher lows (HL) are supporting that current move.
6) 4H 50 should act as a tiny support
7) Daily 200
8) Strong horizontal price zone ~$8,250
9) The strongest criteria - breakout occurred with a strong and powerful 4H candle. Only one candle several hours ago but this is the key why I would like to share the current buying opportunity.
10) Wait for a smaller timeframe rejection from the green box and as always, wait for a pattern formation on 1H to get more secure trade.
If it goes as planned then the target should stay around $9,000 because there is another high-probability trading area.
If it doesn't reach inside the marked box then...whatever...next.
Do your own research and please, take a second and support my effort by hitting the "LIKE" button, it is my only FEE from You!
Soon I will refresh my thoughts about the red box: