After falling by almost 20% last week, Bitcoin stabilized between the $9,800 and the $10,500 mark.
Trading the Range
This range offers the opportunity for a 7.5% gain from the lowest point to the highest. As traders, we know that catching the whole trend is impossible and even to catch half of it would be excellent. Taking this into account, we are then looking at a profit per trade of 7.5% * 0.5 = 3.75% (only). A 3.75% profit per trade is not ideal for swing trading. However, it is worthwhile for scalping. If you would like to trade during this range, you may want to stick with small and consistent gains rather than trying to catch large moves.
Where Are We Heading?
Like any other range, this ranging period cannot last forever, and a breakthrough is (definitely) set to occur in the future.
If the current resistance breaks, we will probably see the price head to $11,000 or even re-test $12,000.
If the current breaks, a more severe correction may ensue due to the significance of this support level. The price is likely to fall to at least $9,000, if not further.
Looking Ahead: It is advantageous to be prepared or even take part in a breakthrough when it occurs. Until then, it is better to focus on the opportunities right in front of you and make the most out of it!
Trading the Range
This range offers the opportunity for a 7.5% gain from the lowest point to the highest. As traders, we know that catching the whole trend is impossible and even to catch half of it would be excellent. Taking this into account, we are then looking at a profit per trade of 7.5% * 0.5 = 3.75% (only). A 3.75% profit per trade is not ideal for swing trading. However, it is worthwhile for scalping. If you would like to trade during this range, you may want to stick with small and consistent gains rather than trying to catch large moves.
Where Are We Heading?
Like any other range, this ranging period cannot last forever, and a breakthrough is (definitely) set to occur in the future.
If the current resistance breaks, we will probably see the price head to $11,000 or even re-test $12,000.
If the current breaks, a more severe correction may ensue due to the significance of this support level. The price is likely to fall to at least $9,000, if not further.
Looking Ahead: It is advantageous to be prepared or even take part in a breakthrough when it occurs. Until then, it is better to focus on the opportunities right in front of you and make the most out of it!