BTC Learn from Today's Movement

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Educational analysis of today's happening. Many traders were liquidated by today's false breakout of the range high.
Hindsight is 20/20 meaning the past is obvious, but the present is not.

After breaking range high we retested it as support with many long-tail wicks; bullish indication. If a long was entered here, once we made a double top off of the bounce exit the long. One could have noticed the RSI bearish divergence for that double top as well.

Once we entered the range again we tested the range high as resistance. The first bearish engulfing candle rejecting from the range high would be a valid short entry.

Keep an eye on the market structure as we head down further. If at any point the price makes a Higher High or a Higher Low, exit the short. A Swing Failure Pattern (SFP) occurred at the blue highlighted demand zone . Long-tail wicks to the downside denote a SFP. Upon seeing such aggressive demand, exit the short. If a SFP had not occurred, once the price bounced and made a HL and a HH that is bullish market structure. Again exit the short.


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