Bitcoin: Buy Opportunities for Short and Medium Term Trading
Here is my quick review of the market conditions for Bitcoin based on the 4H chart.
The market could not develop an upward movement after moving above 10 000.00 resistance and dropped to the main trend line one more time. Also, the market could not break this line too. We saw a bouncing from this line and a strong bullish candle. The price reached 10 000.00 level, and it acts now as good resistance.
The market formed the local swing high at 10 000.00 resistance. This swing high should be used as a signal level for confirmation of the upward movement. If the price breaks this swing high, it will confirm the strength of buyers. If not, probably we will see a new attempt to break the uptrend line.
If we look at indicators, we will get signals supporting both directions. RSI is going to confirm the price reversal from the resistance, and it is a bearish signal. MAD lines and histogram support the upward movement, and it is a bullish signal. DMI shows trend market conditions, and ADX line tells us that sellers become stronger. In the current market conditions, this signal can have more value, because if the market could not develop the upward movement in the previous time, it means we don't have enough buyers. It means that the market can try to move lower.
As for possible trading opportunities, let's think.
My position stays the same - crypto markets and selling can't be used together. So, we have to search for buy opportunities. For safe trading, I would like to wait for the breakout from the triangle based on the daily timeframe. As for the short term trading, it is possible to wait for the reversal signal from the uptrend line, if the price reaches this line again. As an additional signal, it is possible to buy based on the breakout above the resistance and local swing high. If you like short term trading with high risk, probably the hourly charts will be better for you. Just don't forget to place stop-loss orders below the uptrend line, for a case if the market decides to move to 9000.00 support.
And what is your trading plan for Bitcoin? What do you expect from this market in the short and medium term?
The market could not develop an upward movement after moving above 10 000.00 resistance and dropped to the main trend line one more time. Also, the market could not break this line too. We saw a bouncing from this line and a strong bullish candle. The price reached 10 000.00 level, and it acts now as good resistance.
The market formed the local swing high at 10 000.00 resistance. This swing high should be used as a signal level for confirmation of the upward movement. If the price breaks this swing high, it will confirm the strength of buyers. If not, probably we will see a new attempt to break the uptrend line.
If we look at indicators, we will get signals supporting both directions. RSI is going to confirm the price reversal from the resistance, and it is a bearish signal. MAD lines and histogram support the upward movement, and it is a bullish signal. DMI shows trend market conditions, and ADX line tells us that sellers become stronger. In the current market conditions, this signal can have more value, because if the market could not develop the upward movement in the previous time, it means we don't have enough buyers. It means that the market can try to move lower.
As for possible trading opportunities, let's think.
My position stays the same - crypto markets and selling can't be used together. So, we have to search for buy opportunities. For safe trading, I would like to wait for the breakout from the triangle based on the daily timeframe. As for the short term trading, it is possible to wait for the reversal signal from the uptrend line, if the price reaches this line again. As an additional signal, it is possible to buy based on the breakout above the resistance and local swing high. If you like short term trading with high risk, probably the hourly charts will be better for you. Just don't forget to place stop-loss orders below the uptrend line, for a case if the market decides to move to 9000.00 support.
And what is your trading plan for Bitcoin? What do you expect from this market in the short and medium term?
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💎 Share My BEST Trades here 👉 bit.ly/wubits