Bitcoin and 4000

On the 60 minute chart, we can really see that 4000 represents the halfway point, the 50% line between 3000 and 5000.

Above 4000, we are slightly bullish. Below 4000, we are slightly bearish. Overall we are bullish because the trend for months and years is up.

But if you are looking for a trade more than just a quick day trade, then you can do a few things:

1. Buy on a breakout of the all time highs at 5000, very strong signal, but conservative and late to the party
2. Buy on a hold of the 4000 level. We see price is now holding that 4000 level. If price builds between 4000 and 5000, then that gives more power for a break of 5000 itself.
3. Buy on a drop to the bottom of the box at 3000. Heading back down to 3000 is not a great sign for the bulls, but it bounced there before and this could be another good entry point.

Basically, building a position within this box between 3000 and 5000 is a good idea if you believe that there will be a breakout of 5000 in the coming weeks or months. If you wait for the breakout then you might lose out on a significant gain than if you had bought before the breakout.

4000 level is a good measure of the strength within this 3000/5000 level. Above that we can be more confident of a breakout. Below that, things get a bit shakier.

I am very curious to watch how price reacts around this 4000 level, and you should also watch it.


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!! PM me with any trading questions !!

MY TRADING METHOD:
I keep my analysis simple. Good analysis always is.
I use Price Patterns, Moving Averages, and RSI for my analysis.
I use the 1 day for trend analysis and 60 minute for trade entry
For my Targets I use Fibonacci projections, measured moves, support and resistance.
Successful trading means proper risk sizing and trading small so you can stay in the game.