DLavrov

Bitcoin: $40 000 Is Major Support

BINANCE:BTCUSDT   Bitcoin / TetherUS
The daily chart gives us interesting information about how the market is going to move during the next week. what is very important to say from the beginning, we are in the bearish trend in the daily time frame.

1. The price bounced from the major support between $42 000 - 40 000 levels. The support is very important for the whole market. It was the starting point for an upward movement which gave us the ATH . There must be solid reasons to move below it.
2. The market gives us a bullish divergence . It is a strong bullish signal and the major support. It will be logical to see an upward movement from the major support again.
3. We need a breakout above the downtrend line just in order to confirm the possible trend reversal. Without it, the market will be able to continue the downtrend. But if the price moves above the downtrend line, we will be able to see the upward movement to 50MA, 200SMA and $50 000 - 52 500 resistance.
4. A breakout below the major support and the daily low will give a strong bearish signal in the direction of the 1st bottom at $30 000.
5. I think the main target for the nearest few weeks/months is $30 000 which will be reached. Of course, it is not 100%, but it will be the logical movement in the borders of the bearish period which we have had for about 2 months.

How to trade?
I'm going to open long positions with the main stop below the daily swing low and profit targets at the daily MAs and the main resistance area .
I will use swing and position trades and conservative risk and money management strategies.

If/When the price moves below the major support, I will search for bullish setups around $30 000.

I stay bullish in the short term but bearish in the medium and long-term. It is not a position of a newbie trader who follows emotions. My position is based on the signals and information from the price action at the key levels and lines, the market structure, the whole market sentiment, fundamental factors, and my experience combined with knowledge about the crypto market.

Can I be wrong with my position? SURE!
As there are no people who know the future. I just built possible models and I'm ready to follow them.


Thanks for your attention!
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