In this week I posted trading ideas about Bitcoin based on the daily, 4H and 1H timeframes. In order to understand the way of my thinking, and get the whole review about this market, I advise you to read all these posts. You can find the links in the related ideas.
Today, it's Sunday, and we can talk about the King of Crypto using the weekly timeframe. There are exciting setups which we have to take into consideration for making a plan for trading or investing in the long run.
The price bounced from 3000.00 support level. RSI confirmed a price reversal in the oversold zone. After a short term upward movement the price made the 2nd attempt to break the support and move to the lower key levels. The effort was not successful, and the market could not reach even the previous swing low. It gives a signal, a rather important signal that the bears have no power for pushing the price lower. If so, the downtrend can be reversed and we must be ready to see a new sideways movement or the beginning of a new uptrend. And there are several signals which can support the bulls in the long run. Let's talk about them.
The market formed a new swing low higher than the previous one. If the price breaks the previous swing high, it can be done even within several days, we will get a new higher high. There is a rule where Higher Highs and Higher Lows - it's the description for an uptrend.
There is 4000.00 important level which acts as a local resistance. If the weekly close price is above this level, the market will be able to develop the breakout. Breaking above the resistance level - it's a signal confirming that the bulls have power. The further upward movement can be stopped at the downtrend line which is the barrier for the market now. If the price also can break it, it will be the signal confirming the development of a new uptrend and the strength of the bulls.
If we look at the indicators:
- MACD lines support the upward movement
- MACD histogram moves upward and supports the bulls
- DMI is bearish, but ADX line falls. It confirms that the bears are not so strong and we should not expect further downward movement.
Based on the weekly timeframe the market stays bearish, and it will be in such status until the price breaks the downtrend line. The breakout can be used for opening long trades with the 1st target at 6000.00 level. This is a resistance zone formed by the strong level and SMA100. This zone also will be able to stop the upward movement and push the market into a correction. It will be good if all breakouts and upward movements will be supported by fundamental news. In another way, the market has chances to drop in the range.
If you believe in the great potential of crypto and BTC as the main coin - it's possible to open trades above 4000.00 level using the breakout or not, with stops below 3000.00 level and profit targets at 6000.00 and 10 000.00 levels. Just there is a very important thing - don't forget to follow proper money management! Never invest all money in 1 trade even it looks interesting and supported by strong signals. There are no 100% true signals, and when we talk about crypto, sometimes the market can be very unpredictable because of the high level of manipulations with the price.
P.S.
I will be grateful if you support my work by your LIKEs. It's a strong motivation for me to write more for the TradingView community. If you have another opinion, you are welcome to share it in comments, let's discuss!
For haters - I love you all!
But please, try to add more arguments to your amazing comments! I understand, I'm not The Seer of The Future, The Master of Charts, A Legend of Crypto, and The Deliverer of Prosperity and you can ignore my request, but still try your best!
Today, it's Sunday, and we can talk about the King of Crypto using the weekly timeframe. There are exciting setups which we have to take into consideration for making a plan for trading or investing in the long run.
The price bounced from 3000.00 support level. RSI confirmed a price reversal in the oversold zone. After a short term upward movement the price made the 2nd attempt to break the support and move to the lower key levels. The effort was not successful, and the market could not reach even the previous swing low. It gives a signal, a rather important signal that the bears have no power for pushing the price lower. If so, the downtrend can be reversed and we must be ready to see a new sideways movement or the beginning of a new uptrend. And there are several signals which can support the bulls in the long run. Let's talk about them.
The market formed a new swing low higher than the previous one. If the price breaks the previous swing high, it can be done even within several days, we will get a new higher high. There is a rule where Higher Highs and Higher Lows - it's the description for an uptrend.
There is 4000.00 important level which acts as a local resistance. If the weekly close price is above this level, the market will be able to develop the breakout. Breaking above the resistance level - it's a signal confirming that the bulls have power. The further upward movement can be stopped at the downtrend line which is the barrier for the market now. If the price also can break it, it will be the signal confirming the development of a new uptrend and the strength of the bulls.
If we look at the indicators:
- MACD lines support the upward movement
- MACD histogram moves upward and supports the bulls
- DMI is bearish, but ADX line falls. It confirms that the bears are not so strong and we should not expect further downward movement.
Based on the weekly timeframe the market stays bearish, and it will be in such status until the price breaks the downtrend line. The breakout can be used for opening long trades with the 1st target at 6000.00 level. This is a resistance zone formed by the strong level and SMA100. This zone also will be able to stop the upward movement and push the market into a correction. It will be good if all breakouts and upward movements will be supported by fundamental news. In another way, the market has chances to drop in the range.
If you believe in the great potential of crypto and BTC as the main coin - it's possible to open trades above 4000.00 level using the breakout or not, with stops below 3000.00 level and profit targets at 6000.00 and 10 000.00 levels. Just there is a very important thing - don't forget to follow proper money management! Never invest all money in 1 trade even it looks interesting and supported by strong signals. There are no 100% true signals, and when we talk about crypto, sometimes the market can be very unpredictable because of the high level of manipulations with the price.
P.S.
I will be grateful if you support my work by your LIKEs. It's a strong motivation for me to write more for the TradingView community. If you have another opinion, you are welcome to share it in comments, let's discuss!
For haters - I love you all!
But please, try to add more arguments to your amazing comments! I understand, I'm not The Seer of The Future, The Master of Charts, A Legend of Crypto, and The Deliverer of Prosperity and you can ignore my request, but still try your best!
Comment:
In spite of these strange movements, this trading idea stays workable. Only if the price drops below the new uptrend line, it will be a reason to change the plan for long run.
Comment:
In spite of the close of the weekly candle was below 4000.00 level, the market still keeps potential for the upward movement based on the weekly timeframe. For this period, it's very importent to stay above 3000.00 support in order to have opportunity to develop the bullish plan.
💰COPY MY TRADES FOR FREE! Join 👉 bit.ly/41DKDBD
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
