The market has been running upward for several months already. The market gave good buy signals based on the reversal signal from the bottom at 3200.00 level. The market gave us the buy signals based on the breakouts above 4000.00 resistance and SMA100. If you missed those opportunities, you should not try to catch the fast train. If you buy now, you will have a lot of chances to open a buy trade at the top and get a correction after that. It's ok if you open a long position based on the current levels just using a small part of your capital and such buying is the part of your bigger plan for long term investing. Yes, it's possible even entry levels now are not so good even for the long run. But what if you invest the whole capital into this trade, what if you use the leverage?
This upward movement can be up to 6000.00 level, and after that, we will get a reversal with the further falling. At the same time, we have good chances to get a divergence - a trend reversal signal. The market will be able to bounce from 6000.00 as it's the strong level from the past. Look at the chart and count how many times the market bounced from this level. The market needs solid reasons for breaking it from the 1st attempt. Do we have such solid, let's say fundamental reasons?
So, if you missed the previous buy opportunities, it's not a variant for buying now, and it's not the best variant for buying even if you want to trade in the long run. The best variant is to wait for a correction to 5000.00 support or to 4200.00-4000.00 and buy based on reversal signals.
Proper trading is one of the most important elements of profitable trading. Don't forget about it!
But undoubtedly, BTC is really in the danger zone. It’s already trapped many. Would at the very least wait for a pull back to a key level with confirmed signs of strength/demand before even thinking to take on the risk. Where is all the capital entering the market even coming from? Retail just got hammered again and if they were reading volume they would have seen substantial signs of weakness with plenty of warning that a long entry at this level was not a great idea. Way tooo high risk with supply coming in.... but it’s trading... there must be and will always be winners and losers!
Great post here though. Thank you and GL !