BTCUSDT to bounce from 4h or daily support
We expected a pullback of the price after it broke to the upside and went beyond bit our target. Now the pullback is slowly maturing and coming to the targets from where it can bounce. Therefore, lets get ready with the relevant levels and the trade setups for long. I have marked two support levels which is attracting the price on this pullback. The first one is 4h support 4HS1 from where a bounce is likely. In case the price wants to go southward a bit further on this pullback then the next support is daily support DS1. That level will definitely give a long trade opportunity. Therefore, I will take some amount from 4HS1 and will add at DS1 in case the price moves a bit more southward. Lets trade it and see where the price leads us.
Comment:
We can see that the price tapped into the 4h support zone 4HS1 and the reaction from that zone was nice. The price has bounced from there aggressively. Let us see if this reaction is sustainable for now or there will be another dip into that zone. I have marked two hourly resistance zones HR1 and HR2 on the chart which signifies that the price will have some resistance there and allow us to take some profit and only to add after a small pullback.
Comment:
So that was good tap to the daily support DS1. We talked about DS1 being a possible target of this pullback and a good opportunity to long as that would produce a good bounce. The price bounced also from 4HS1 but the bounce did not sustain for long, however, the reaction from the daily support DS1 where we wanted to add to the position was awesome. It gave us already a chance to book some profit. I think this bounce will sustain and the price will move upwards after some zigzag movement. Lets see how the price action develops in the coming hours and days. But for now it looks quite promising. Let me know what you think in the comments. In the next post I will also update the new resistances which have developed through latest price action and what would be good levels for booking some profit.
Comment:
And there we have the pullback from 4HR1 we talked about in the last post. The price struggled to go beyond 4HR1 and could not close above it. This is whats we were expecting and that is why we booked profit at 4HR1 level. Now the pullback is there and the price has come down to hourly support HS1. I will add position here as I think the price shall bounce here. Let me know what is your opinion on this price action.
Comment:
The price action is well according to our expectation described in the last post. We were expecting the price to pullback from 4HR1 and then find support from HS1. We took some profit at 4HR1 and added to the position again at HS1. Now the price has again pushed towards 4HR1. And this time it managed to close above this resistance which is a very good sign. We currently just seeing the retest of that resistance from above and I believe we are moving upward towards 4HR2. And as I mentioned in one of the previous posts, that 4HR2 is not that significant like 4HR1 and may not give any significant pullback and the price may struggle only a bit there before piercing through it. Lets see how it goes. What do you think. Let me know in the comments.
Comment:
This does not look well at least for the low time frame price action. The price gave up struggling 4h resistance 4HR1. I am out of the position while its still in profit. I will wait for a new entry. I think the price will revisit 4h support 4HS1 before making any upward move and break that 4h reisstance 4HR1. Lets wait and watch how the price action develops. I expect 4HS1 can be a good entry. I will share the setup in case it presents itself and I take the trade.
