TradeVibez

Bitcoin Setting Up For $57k

Long
BINANCE:BTCUSDT   Bitcoin / TetherUS
As we all know Bitcoin has been on a tear and what we like about this runup is that it has had healthy pullbacks along the way but most importantly has respected traditional technical analysis along the entire way as well.
If we look at the Fibonacci levels I have illustrated here, we can see that is evident in the respect of the fib levels that Bitcoin has done. All 3 levels thus far in the .236, the .382 and now the .5 have all been springboards for Bitcoin price action and now we find ourselves coming up to the next major fib level in the .618.
This is key for a few reasons:
Number one it means that we confirmed a breakout above the .5 fib level. So even though this seems elementary, it is key in the fact that breaking and holding above a 50% retracement of a swing means that you are almost certainly on your way to test higher prices.
Number 2 would be in the fact that Bitcoin will be inside of the Golden Fibonacci pocket once breaking the .618 level at $51083. If Bitcoin breaks out of this golden range once breaking the .618, a test of our next Fibonacci level will be imminent and that leads us to my next reason.
The .786 Fibonacci level at $57139, or better known as one of the deeper retracement levels of the fibonacci sequence, is a VITAL area in the fact that the .786 is the area where most traders will take profit. As someone who trades using Fib retracement often I can say that my respect for the .786 Fibonacci level is tremendous. In fact it is the same level that I myself often will take profit when trading by closing 75% to 80% of my position.
This is also the level where LOWER HIGHS are often formed. Lower highs as we all know are major bearish indicators.
Now keep in mind that a lower high at $57k is not something I am expecting, but as a trader I am aware of the nature of this key fib level and must warn others due to the fact that this level could be the level that Bitcoin looks to test this week IF our golden Fibonacci pocket is to be broken between $51083 and $52236. The signal to watch will be a holding of this $50124 price level overnight (here in the US).
If this level holds on the hourly time frames, a breaking of the .618 fib level will be likely and this is where the game will begin.
In the meantime, this $50100 price level we are at currently appears to be a nice entry for this trade with stop losses just below $48800, $47800 and lastly $46800.
I personally would be having limit buy orders waiting around $46800 and $46900 rather than selling. I am an aggressive trader but I would advise folks to be somewhat the same as bitcoin is much more bullish right now than bearish and striking while the iron is hot could prove to be very wise in the future.