Bitcoin: 50 000$ as Support and New Bullish Signals We Need

First of all, thanks for taking part in the poll and picking the topic for a new post! You asked about a market review for Bitcoin, and here it is.

I want to start the review with the facts, which we have to take into consideration right now.

1. The price bounced from 50 000$ support, and we got the a reversal signal. It gave us trade opportunities for buying in different timeframes.
2. The reversal in the BTCUSD market pushed altcoins upward as well. We got an additional confirmation that Bitcoin can reverse altcoins and support trend movements in different markets.
3. The bears couldn't break 50 000$ support. We got a false breakout. The logic told us about a downward movement toward 42 500$ and even 30 000$, but the bears were not strong enough to develop the downward movement.
4. The price reached MAs, which are acting now as resistance. The breakout above it will push the price toward the ATH. The reversal from MAs will push the price toward 50 000$, and the bears will have a new attempt to break the support.
5. MACD histogram and RSI confirmed the reversal from 50 000$ and gave bullish signals. The reversal from MAs gives a bearish signal. I would like to say that the market can move up or down and it is something like 50%-50%. We need more signals confirming the further direction.

How to trade Bitcoin?

So, if I needed to plan my trades in this market, I would wait for additional signals confirming the further direction. The breakout above MAs and the local swing high will give a new bullish signal in the direction of the main uptrend. I would use this additional bullish signal for buying. The profit target would be the ATH with stop orders below the local swing low. If the market picks the bullish model, the long-term targets can be based on the round numbers as well, up to 100 000$ level.

If the price bounces from MAS, I would watch for the price action at 50 000$ and use bullish setups for buying. A breakout below the support will open the road toward 42 500$. Bullish setups from this support I would use for buying as well.

As you can see, I don't plan short trades because I don't like to short in the crypto market. Maybe when the market is too overbought, and there will be strong bearish setups, I will use a small part of my capital for shorting, but not now. Also, I don't want to trade Bitcoin, and I'm going to use it as an additional indicator supporting my trading ideas for altcoins.
There are a lot of other markets which can be much more profitable and interesting for swing and long-term trading. I would like to use the capital for trade opportunities from that markets.

Thank you very much for your attention! If you want to share your own trading plan, thoughts, and ideas about Bitcoin, you are welcome to do it in the comments! I will be grateful if you support my work with your LIKE.



Disclaimer!
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.

Comment:

The price didn't move downward after the reversal. It means that we should be ready to see a breakout above the local downtrend and MAs. If so, it will be a good bullish signal for BTCUSD and altcoins.

Comment:

Also, we should take into consideration iH&S chart pattern in the 4chart, which will be able to give a reversal signal.