From my point of view, we have to watch for the price action at 50 000$ as it will be able to become a good resistance. Why? Look at the space between the current price and SMAs . It tells us that the market is overbought, and we should be ready to see a correction movement. line reached the overbought zone as well. It is another signal which tells us about a possible correction movement. Look at the histogram and compare it with the previous high. Don't you think that it is another signal? Also, we should be ready to see a divergence at 50 000$ which will give a very solid signal.
I know, many of you will write in the comments that I'm wrong again, and the price will move to the Moon! I understand your position. You like to follow your emotions and ignore signals from the chart and indicators.
You also didn't believe me when I wrote about a pullback from 40 000$ toward 30 000$ and even toward 20 000$. But the price reached 30 000$ and gave us very good buying opportunities.
To be honest, I have no ideas where the price will be tomorrow. I don't have a crystal ball, and I don't want to play in predictions.
I want to take into consideration all signals and create a trading plan based on these signals.
So, what should I do if the price bounces from 50 000$?
- I will watch for a correction movement and search for buying opportunities at SMA20, SMA50, and 30 000$ support.
- I will open swing and long term trades after the correction using the reversal signal from these lines.
What should I do if the price breaks 50 000$?
- I will look around and try to be sure that it is not a false breakout
- I will use trade opportunities for short term trading in the 5m-1h timeframes.
How the market will move further, I don't care. I have the exact trading plan for both options, and I'm going to follow it.
And what about you?
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
I think this is the point where everybody will loose the ball and will be left behind or get short squeezed out of the game.
A serious correction will be at around the 80000 which will reach slowly but steadily with reasonable corrections and will make the 45-50000 area a support zone afterwards...