Bitcoin moves upward in the ascending channel. If you don't have long positions for Bitcoin, you have to wait for new trading opportunity. Buying now, you have good chances to open long trades not far from the high. Let's look at the daily chart and try to understand how to trade this market correctly. The price broke a strong resistance zone formed by 2900.00 and 3000.00 levels and it was a signal for further upward movement. Now we have a confirmation that the upward trend continues. The best variant for trading, wait when the market drops to a possible support zone and we get a buy signal. But before this, we should try to spot a resistance zone where the market will reverse and start falling. The possible reversal zone can be near 3500.00 level. The up border of the ascending channel and 3500.00 resistance level will be able to stop and reverse the market. If you have opportunity to make money on falling markets, you will be able to sell Bitcoin at the high. Don't forget that a good sell signal must be confirmed by RSI and a reversal candlestick pattern. Stop orders for short trades must be placed above the local swing high. Profit target for short trades must be at 3000.00 support level. As for buying, the possible reversal zones will be at the middle line and the trend line of the ascending channel. Buy signals from these zones will have to be confirmed by RSI reversals. Stop orders for long trades will be placed below the local swing lows and channel lines. Profit target for long trades will be at the previous highs and the whole numbers.
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The price reaches the possible reversal zone. Watch closely for price action in this zone.
What kind of RSI do you look at for cryptocurrencies?
I'm guessing that for overbought it can be a bit higher than 70 since the crypto markets are very folatile. The same for the oversold situation.
DLavrov
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@blkman, Hi, thanks! I use the same RSI with 8 and 14 periods for all markets. The same goes about the zones.
CakoboSabahattin
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Thanks for your work. I am learning how to trade more rationally thanks to your posts, keep on with this amazing insights!
feattte
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btc to 2000
UncannyDeduction
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Google trends show an exploding interest in bitcoin the last few days. Doesn't that mean that the sheeple is going to panic buy?
Look at the 30-day graph below:
g.co/trends/n6FRs
Grandmaster_Nitemare
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@LogicalDeduction, Very interesting!
ripple10usd
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@LogicalDeduction, its due fork
UncannyDeduction
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@ripple10usd, Yeah but still. Normies are googling it (and consider buying hopefully).
Interest is at 100% right now, and it's not people like you and me that make up that rise.
People like you and me are probably in the background noise at a constant value.
usra
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@LogicalDeduction, so is it a time to be scared and sell crypto waiting for a crash? What should be strategy? For new buyers?
Very nice work!
What kind of RSI do you look at for cryptocurrencies?
I'm guessing that for overbought it can be a bit higher than 70 since the crypto markets are very folatile. The same for the oversold situation.