Bitcoin: Price Channels and How to Trade

I wrote about a possible buying opportunity based on a reversal signal from the trend line of the price channel. The 1st long trade could be closed by stop but a false breakout gave us a new buying signal. You can see that trade which reached the profit target. What's next?

As we see the price reached the upper line of the price channel from the 1H timeframe. Also, the price is not far from the upper line of the daily price channel. We have a solid resistance zone and we should expect the price reversal with a further downward movement toward support levels, trend lines, and SMAs.

If you like to short crypto, I don't like it by the way, the market is going to give you such an opportunity. Of course, you will trade against the main bullish trend and it is not the best idea. But with the proper risk and money management, sometimes it can be profitable. Just be very careful with your short trade.

My trading style for crypto is simple, I use correction movements and bearish trends for searching for buying opportunities. I like to buy and hold.
So, if we talk about the 1H chart, I would like to wait for a reversal at least from the trend line of the 1H price channel and open a new long trade.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.