Bitcoin: Reversal from 42 000$ and New Buying Opportunities

The price bounced from the obvious resistance between 42 000$ mirror level and MA200. We talked about this model in the previous post. What's next?

If we look at the daily timeframe, we will see a bearish setup. The bearish candles show us who control the price right now. RSI confirmed the price reversal from the resistance and supports a possible downward movement. The same goes for MACD histogram which is also bearish.

If we use MA200 as the main trend line, the market is bearish as the price is below it. But the bearish structure was broke by the breakout above the local swing highs at 36 500$. In order to get a bullish structure, we will need a swing low above 30 000$. In such way, we will get higher highs and higher lows and it will confirm the bullish trend. The breakout above MA200 will support this model.

How can we trade?
1. Those who opened long positions from 30 000$ now have a choice what to do: fix the profit or keep holding. I opened long positions with long-term goals and for this 42 000$ is just an opportunity to fix some profit and open new long positions after a short-term correction.
2. For Those who missed reversal from 30 000$ support and believed too much in the bearish model, it makes sense to wait for a correction between 36 500$ amd 34 000$ and use reversal setups for buying. This support will be able to hold the price and become a starting point for a new upward movement. The breakout above 42 000$ and MA200 will open the road to 50 000$ round number and the ATH.
3. If the price moves back to 30 000$, there will be new buying opportunities for many traders. I don't think that we will see 30 000$ during this correction, but we have to consider this option as well. If there is strong fundamental news against the market, the key support will become the main target for the bears.

As you can see, all these 3 options are bullish and I vote for this direction in the medium and long term.

I remind you that Bitcoin moves altcoins. If we see the correction movement in the BTCUSDT market, altcoins will be able to correct the upward movements as well. It will give new trade opportunities for buying in the market which will look much more bullish.

Also, I remind you one more time that I don't provide financial advice. I describe possible trade opportunities and share my ideas how I'm going to trade. You have to follow YOUR trading plan.

Thanks for spending time reading this post! I hope this information will help you better understand in which direction the market will be able to move in the nearest future. I will be grateful if you support my work by smashing the LIKE button and comments.
Have good trades!