I think the market was only seeing the first impulse with the upside pullback and that the next short-term FEAR period for the crowds get greedy again. Nothing goes up, none stop without punishing greed. After 70/80% recovery, it's normal for whales to take profit around these areas. flip the 70/80% zone usually price tends to continue up with the trend. Until then, of course, we have to play Cautious.
The market has undoubtedly seen rapid profit gains in the form of sell the news type of an event for El Salvador officially approving bitcoin as legal tender. As it always happens, when the market sees mainstream people getting in, the whales have enough buying liquidity to sell and dump their bags on those who're joining LATE! These are the people who will probably sell this correction too.
For now, we have formed a huge liquidity gap after the recent crash. It is oversold on most oscillators as well. A further crash down is possible nothing is guaranteed.
The positive news here is we are developing a trading range to manage from & we have a beautiful high volume bear candle(supply bar) to overcome & manage against, which should tell us much of the story. the high volume tells us we need some tests which are already occurring
A good reason for a bounce
- There are not enough short side orders around 45/46k level
- Price bounce off “Golden Ratio” (0.618)
- We also have daily 50 EMA sitting at 45k.
- 21 Weekly EMA sitting at 43k
No worries yet Short term I'd expect us to recover
Short term play:
There are three times phase we need to watch to trade safely:
1. The first phase typically is about very intense and broad volatility with very high risk. It's NOT suggested that scalpers or short-term traders trade intraday swings because the market is volatile and lacks the trend. This is where #patients come in to play!
2. When the market is recovering and reverting to its means. 0.5($47661) and 0.618 ($48851) Fibonacci's can be used for reference as resistances backed by the volume of the selloff. In case breakout with a decent close of 4h or higher candle over this Fibonacci's levels, the next is the said pre-breaker set up for 0.702 ($49717) - 0.786( $50598) retest, which marks the fakeout zone above as distribution place. if we can get back above these fibs then we rip to $56k/58k.
3. when the market slowly recovers its "technical" features and TA applies better back again. That's when you could trade BTCUSD more safely.
5-day chart RSI downtrend has not been broken yet also something to look out for breaking this level could be used as confirmation.
BTC weekly Support is still intact!
Another good confirmation would be Bitcoin printing new higher with weekly rsi getting back above 65% level.
Another KEY! to watch weekly RSI (relative strength index) hold 53% Dips are for buy
as long 53% RSI holds BTC tend to continue with an uptrend take a look example of look at 2013 & 2017 bull markets:
Fibs
What Exactly Do These Levels Mean?
The Fibonacci levels that are used within institutional trading are 23.6%, 38.2%, 50%, 61.8%, and 100%. However, the Fibonacci levels more commonly used in cryptocurrency trading is 38.2%, 50%, 61.8%, and 100%.
The 50% level is not a Fibonacci level per se but stems from Dow Theory’s assertion that averages often retrace half of their prior movement. Nonetheless, these are levels that you’ll find the most support and resistance around.
But, why are these levels important?
They’re psychological barriers that tend to repeatedly show up within the financial markets, time and time again. They are called inflection points where traders tend to anticipate a bounce or break-off resistance or support.
Another interesting aspect to Fibonacci levels are, the fact that the more people that use them, the more accurate they become. This tends to fall under the “self-fulfilling prophecy” paradigm.
The most important Fibonacci level, as you might’ve guessed, is the 0.618, Golden Mean level. This is a critical level where sellers tend to give up bargain-hunting and a potential mass buying frenzy will ensue.
These are great places to either buy upon a breakout or pull back to after an uptrend. Careful traders won’t make a move until the price is 5 to 10% above this Fibonacci level in order to confirm their speculation. This is a safe move since Fibonacci levels are not always precise.
Long-term outlook still in play. #patient
The market has undoubtedly seen rapid profit gains in the form of sell the news type of an event for El Salvador officially approving bitcoin as legal tender. As it always happens, when the market sees mainstream people getting in, the whales have enough buying liquidity to sell and dump their bags on those who're joining LATE! These are the people who will probably sell this correction too.
For now, we have formed a huge liquidity gap after the recent crash. It is oversold on most oscillators as well. A further crash down is possible nothing is guaranteed.
The positive news here is we are developing a trading range to manage from & we have a beautiful high volume bear candle(supply bar) to overcome & manage against, which should tell us much of the story. the high volume tells us we need some tests which are already occurring
A good reason for a bounce
- There are not enough short side orders around 45/46k level
- Price bounce off “Golden Ratio” (0.618)
- We also have daily 50 EMA sitting at 45k.
- 21 Weekly EMA sitting at 43k
No worries yet Short term I'd expect us to recover
Short term play:
There are three times phase we need to watch to trade safely:
1. The first phase typically is about very intense and broad volatility with very high risk. It's NOT suggested that scalpers or short-term traders trade intraday swings because the market is volatile and lacks the trend. This is where #patients come in to play!
2. When the market is recovering and reverting to its means. 0.5($47661) and 0.618 ($48851) Fibonacci's can be used for reference as resistances backed by the volume of the selloff. In case breakout with a decent close of 4h or higher candle over this Fibonacci's levels, the next is the said pre-breaker set up for 0.702 ($49717) - 0.786( $50598) retest, which marks the fakeout zone above as distribution place. if we can get back above these fibs then we rip to $56k/58k.
3. when the market slowly recovers its "technical" features and TA applies better back again. That's when you could trade BTCUSD more safely.
5-day chart RSI downtrend has not been broken yet also something to look out for breaking this level could be used as confirmation.
BTC weekly Support is still intact!
Another good confirmation would be Bitcoin printing new higher with weekly rsi getting back above 65% level.
Another KEY! to watch weekly RSI (relative strength index) hold 53% Dips are for buy
as long 53% RSI holds BTC tend to continue with an uptrend take a look example of look at 2013 & 2017 bull markets:
Fibs
What Exactly Do These Levels Mean?
The Fibonacci levels that are used within institutional trading are 23.6%, 38.2%, 50%, 61.8%, and 100%. However, the Fibonacci levels more commonly used in cryptocurrency trading is 38.2%, 50%, 61.8%, and 100%.
The 50% level is not a Fibonacci level per se but stems from Dow Theory’s assertion that averages often retrace half of their prior movement. Nonetheless, these are levels that you’ll find the most support and resistance around.
But, why are these levels important?
They’re psychological barriers that tend to repeatedly show up within the financial markets, time and time again. They are called inflection points where traders tend to anticipate a bounce or break-off resistance or support.
Another interesting aspect to Fibonacci levels are, the fact that the more people that use them, the more accurate they become. This tends to fall under the “self-fulfilling prophecy” paradigm.
The most important Fibonacci level, as you might’ve guessed, is the 0.618, Golden Mean level. This is a critical level where sellers tend to give up bargain-hunting and a potential mass buying frenzy will ensue.
These are great places to either buy upon a breakout or pull back to after an uptrend. Careful traders won’t make a move until the price is 5 to 10% above this Fibonacci level in order to confirm their speculation. This is a safe move since Fibonacci levels are not always precise.
Long-term outlook still in play. #patient
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So far bitcoin going as planed
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