As per our last analysis (attached below), we know that Bitcoin is still overall bullish and we will be looking for trend-following buy setups as it approaches the lower brown trendline.
Bitcoin formed a valid trendline in red but it is not ready to go yet. We always wait for extra confirmation and trigger. We want the buyers to prove that they are taking control again by breaking above the last swing high!
Trigger: Waiting for a momentum candle close above the gray area (last high) to buy.
Or whatever your trading plan is. Always follow your trading plan.
Our stop loss always goes just below the last swing low, and we target the double of our stop loss size.
Unless Bitcoin breaks below the lower brown trendline (and its last swing low) then and only then the momentum would be shifted from bullish to bearish.
For now, we are still overall bullish (long-term) and looking for trend-following buy setups around our lower brown trendline which acts as non-horizontal support.
Good Luck
All Strategies Are Good; If Managed Properly! ~Rich
It has broken below the lower brown trendline, so we are to assume now that this have shifted to a bearish momentum. Where should we look now for the buy setup?
@C0WTKQprem1um for the momentum to be shifted, Bitcoin has to close below the 30k
As per my trading style, i am waiting for a momentum candle close above the last swing high to buy, as shown in the analysis, or if a new swing high is formed around the red trendline, then it would be considered the new trigger swing
Dar00
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@TheSignalyst, So you are expecting the candle to close ~37, then you would enter ?
TheSignalyst
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@dburnat, right, this is according to my trading style, and it is clear in the description.
Unfortunately, many traders do not read the caption and think that I already entered buy (or it is a signal to buy now)
for now, around 37 is the last swing high, so I am waiting for a momentum candle close above it to buy, or as mentioned, if price forms a new swing high around the red trendline, then the last swing high would be updated and we will buy on its break upward.
For now BTC is overall bearish (from a short-term perspective as you can see) and it would be a good idea to buy blindly now, as you see, whoever bought earlier is now suffering. always wait for the buyers to prove that they are taking control, then and only then, we will be interested in buying.
Dar00
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@TheSignalyst, Thank you. I see, it would form some sort of reerser head & shoulder pattern clearly pointing out at growth.
Good idea to buy blindly now ?
TheSignalyst
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@dburnat, Buying blindly isn't my style, thus I can't recommend it. Many traders may call my style "late", but I would call it "extra confirmation"
elkadro
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@TheSignalyst, your style is perfect, i wait for confirmations and trendline breaks as well. less risk
TheSignalyst
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@elkadro, Thank you Elkadro, if I remember well you are Lebanese right? let's have coffee when the covid situation cools down.
and my style is far away from perfect ;) but it suits me well.