BTCUSD: Don't Fall Asleep. 10400 Resistance Still In Sight?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD update: Extremely uneventful price action is now in progress which is very unusual for this market. Hovering just above the newly established bullish trend line , I interpret this activity as an absence of weakness which lends a more bullish bias to this market.

Slow markets that go nowhere can be very confusing, especially if you make the mistake of looking at smaller time frames. Often when markets trade like this, participants are waiting for something. The Goldman Sachs attempt to pull the rug from under this market only highlights its strength in the form of an absence of selling. Weak markets do not waste time, they break support levels and quickly which is not happening. Like I wrote in my previous report, evaluating price action is about what the market IS doing and what it is NOT doing.

The 8659 level is not only a reversal zone boundary, it is now part of the rising trend line established off of the 8342 low. Also the 8174 to 4983 support zone (.618 area of entire bullish structure) is just below which again points to a higher possibility of attracting buyers.

Market context is a variable that is often overlooked by inexperienced traders. It comes in many forms, but on a chart, it includes factors like location, broad price structures and levels. Even though you can make an argument for a lower high in this situation, when viewed in light of the current context, you can make a stronger argument for a higher low in my opinion. So what is the best action to take in such a situation? No action, until the market reveals its intent.

This market needs a strong catalyst to spark the bullish momentum which will be confirmed once price closes above 9616 decisively. IF it can do that, I would expect a push to retest 10422 within reason. The other scenario I am watching for is another failed low or fake out where price retests 8174 and reverses back up quickly. I do not know if any of these scenarios will happen, but I will be prepared in case they do. The market will eventually choose.

In summary, quiet markets are actually a very good thing. They can offer opportunities that are not obvious to the herd just yet, which is the kind you want for longer term strategies. They not only offer a more stable environment to build and manage a position in, but they also offer a clear definition of short term risk. When viewed in light of the current context, a quiet market is a sign of strength because based on structure and news, this market should be going lower. Even if more bearish news comes out, and the herd reacts, I think that will only create more buying opportunities. The only factor that can keep you in this game, especially during very uncertain moments like this is your relationship with risk. If you are scared of losing, you will lose. If you are not scared to lose, you may still lose, but you also open yourself to the possibility of a win. The ability to take a loss is what keeps you from getting shaken out or second guessing in environments like this, not formations on a chart. This does not mean you should be irresponsible, it means you should always be considering what kind of risk you can comfortably take.

Questions and comments welcome.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| | Cofounder (S.C.)

In the past 2 hrs, BTC has formed a reverse head & should at the bottom of $7.6K, then followed up with a huge flag... Now cup and holder on top of the huge flag! BTC may reach $9K in a few hrs.
Litecoin just below trendline and bitcoin just above but litecoin runs the line sometimes. Interesting discussion
Well.. The other possible scenario is when the 8200ish level is not held and bears are stronger... Then where to look for support... ow I don't know and will only watch for some reversal to get in again.
I like what you said Marc. The only problem I see is where is "the herd"? Seems its getting thinned daily. Seems like that herd is all hat and no cattle. Unless we get more cattle in the market, I see this as a field of diminishing returns.
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@johnhawkk, Agree! So many have been burnt in crypto - largely from inexperience and unrealistic expectations. Most of those aren't interested in actually trading or investing, so I seriously doubt that they'll come back into the market until it starts to "moon". Most of those still in seem to be "HODL" cultists and once the market reaches any sort of new high we get a wave of selling as those people try and escape with a small loss or break even.
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I think your wrong.. The market needs to fall. And thats it. Stop getting your followers into trades. just sit tight and wait
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faryad TheCryptAlpha
@TheCryptAlpha, yes he is wrong. we have doble bottom At the same time as the meeting G20 -march 19,20
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I appreciate you sharing and I hope haters don't bother you. I don't know how many times you have to write IF in CAPITAL BOLD GLITTERY LETTERS before people get off your back.
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