BTCUSD: Stability Required Before Next Long, Watch And Wait.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD update: Price pushes through the 8626 support level to find some hesitation at the 8350 reversal zone boundary. This area is a much more attractive place to look for longs, but taking a swing trade is contingent on what type of reversal formation appears.

Momentum is now bearish and even though price is in the vicinity of support levels, it is reasonable to expect this sell off to continue until it proves otherwise. In order to do that, it needs to form a clear reversal candle such as a pin bar , engulfing , inside bar , etc. And further evaluation such as reward/risk can be figured out at that point, but for now, we are steering clear of any new long swing trades until this market can prove stability.

Overall our perspective at S.C. is bullish and the current retrace is normal and healthy. If this short term weakness continues, price can reasonably revisit the 7700's or even lower before showing signs of reversal. This is not a prediction, just a possibility that can materialize if this momentum does not change soon. Information like this is what helps to minimize premature entry while the market continues to sell.

Currently, the next minor resistance that can serve as a bullish target once stability returns is the 9359 to 9633 zone (.618 of current bearish swing). This zone will adjust lower if this market continues to push lows.

In summary, now that price is interacting with predetermined levels like the 8350 reversal zone boundary (relative to the 8650 low) it is time to pay close attention to the formations that materialize here. And since momentum is clearly bearish , it is a good idea to be more selective as far as what to accept as a reversal worth entering. At the moment, there is nothing to do except watch and wait. If an appropriate setup appears, risk can then be measured and possibly a swing trade triggered. Keep an eye out for updates on S.C. because that is where trade signal details will appear.

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

Or just identify and trade the breaks when they come

Thanks Marc for your words of wisdom.

Looks like a triangle pattern to me.

Good Call.

How about bad news is it possible to spot it on the chart, before it goes online and viral?

Bearish pin bar on the 2 hour time frame after the recent rally (which was also suggested by a bullish pin bar) suggests we are going back down to previous lows, and probably lower. Thanks Marc for repeatedly drilling into us the importance of the pin bar, engulfing candle, and inside bar for important clues.
thnx master
Predicted the bounce
+1 Reply
Obrano GabrielVasile
@GabrielVasile, Nice one
@Obrano, Thanks man, follow for more ideas
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