Bitcoin Range Market Conditions

Based on 4H chart, we can consider that the market moves in range. The horizontal price channel is formed by 2600.00 resistance level and 2200.00 support level. Volume falls and we should not expect for strong price movement now. If you want to trade in such conditions, you have to use buy and sell signals based on trading rules for range markets. It means that you have to buy when market drops to the bottom level of channel and sell when it reverses from the up level. All price reversals must be confirms by RSI. The trading signals will be stronger if RSI reverses in overbought and oversold zones. Also you must be ready for a price breakout from this channel. If the market breaks the up border of the channel, you will have to buy with a stop order below the local swing low. If the market breaks the bottom border of the channel, you will have a sell signal with a stop order above the local swing high. Any breakouts must be confirmed by big volume, otherwise you can face with false breakouts.

Comment:

Price broke the resistance level. It's a signal for possible buying. But if you decide to open long trades, you must be careful. The markets are unpredictable now. Use stop orders and proper money management.

Comment:

Be ready to possible retracement to 2600.00 level. This support level must hold the market for further upward movement. If price breaks below 2600.00 support level and stay for a while, we'll have a fake breakout of the price channel.

Comment:

Watch for price action near 2800.00 resistance level. It's a possible reversal zone.