In my previous post I predicted it was likely BTC would bounce around $8k to about $9.2k, and fortunately (if you traded) that prediction was spot-on! But like Han Solo says: "Don't get cocky, kid!". I'd say it was an educated guess that luckily turned out to be true, and today I'd like to make another.
As you can see right now we're touching the bottom of the bear channel we're in, and once again BTC shows signs of a bounce. We've touched the bottom four times now, and there's currently a tiny little doji forming. This info along with RSI showing oversold suggests BTC is gonna bounce once more. But the higher selling volume suggests it won't bounce so high. I'd say we should easily see $8k, but it doesn't look it'll have much more momentum than $8.5k tops.
On the other hand, we could see BTC break the bear channel, which it probably would do quite hard. A previous support from November is around $5.8k, but I wouldn't be surprised to see $5k. Mostly due to market sentiment, where the previous psychological support at $8k probably held because people expected it to hit $8k and placed buy orders there. Same thing with $5k.
So for this trade I'd say:
If a candle forms under the bear channel - let it fall and place orders around $5-5.8k instead.
If the next candle is bullish - place an order with at tight stop-loss and take profit around $8.2-8.5k.
Also, since BTC is pulling the whole market along with it, I'd consider trading som alts like LTC, ETH, XRP och XLM, because if BTC does indeed bounce it'll most likely make the alts bounce as well.
Trade safe!
As you can see right now we're touching the bottom of the bear channel we're in, and once again BTC shows signs of a bounce. We've touched the bottom four times now, and there's currently a tiny little doji forming. This info along with RSI showing oversold suggests BTC is gonna bounce once more. But the higher selling volume suggests it won't bounce so high. I'd say we should easily see $8k, but it doesn't look it'll have much more momentum than $8.5k tops.
On the other hand, we could see BTC break the bear channel, which it probably would do quite hard. A previous support from November is around $5.8k, but I wouldn't be surprised to see $5k. Mostly due to market sentiment, where the previous psychological support at $8k probably held because people expected it to hit $8k and placed buy orders there. Same thing with $5k.
So for this trade I'd say:
If a candle forms under the bear channel - let it fall and place orders around $5-5.8k instead.
If the next candle is bullish - place an order with at tight stop-loss and take profit around $8.2-8.5k.
Also, since BTC is pulling the whole market along with it, I'd consider trading som alts like LTC, ETH, XRP och XLM, because if BTC does indeed bounce it'll most likely make the alts bounce as well.
Trade safe!