Bitcoin in a Flat Monthly consolidation phase.
Hello Dear Traders,
Trading Plan:
1) Short near the top of the monthly range. Either Failure at 10760, or 11000-11200 failure.
2) Long If we get a consolidation above 11600.
You can see we are forming a flat sideways consolidation on Bitcoin on the monthly time frame, as we have after the first impulse on the previous two market cycles, in 2011 and 2015.
We were waiting for the validation that this is a flat monthly consolidation as the lows of July and then August held. For this to continue being a flat consolidation we should not get a monthly close too far above the monthly resistance level of 10760. Therefore a rejection from 10760 or 11000-11200 will be valid trading ideas.
On the other hand if we start to consolidate above 11600 then it is likely that we move up and negate this idea.
Trading Plan:
1) Short near the top of the monthly range. Either Failure at 10760, or 11000-11200 failure.
2) Long If we get a consolidation above 11600.
You can see we are forming a flat sideways consolidation on Bitcoin on the monthly time frame, as we have after the first impulse on the previous two market cycles, in 2011 and 2015.
We were waiting for the validation that this is a flat monthly consolidation as the lows of July and then August held. For this to continue being a flat consolidation we should not get a monthly close too far above the monthly resistance level of 10760. Therefore a rejection from 10760 or 11000-11200 will be valid trading ideas.
On the other hand if we start to consolidate above 11600 then it is likely that we move up and negate this idea.
This strengthens the idea of a flat monthly consolidation.Ideally this should not last longer than October. Our advice to you would be to ready and educate yourself on trading or trade other trending markets while Bitcoin is consolidating. Set some alerts for if price goes below 10k. It may be a buy. Also if we do actually start to consolidate above 11k again we should pay attention for upside. Until then.
Happy Trading!