Bitcoin: From 40 000$ to 20 000$ - How to Trade in Crazy Market
After a pullback from 34 771$ the price bounced from 28 000$ level and SMA50. We could see a new upward movement in the structure of the main bullish trend. The crypto enthusiasts and holders are happy! The market is running to the Moon, ignoring physics laws and logic. But if we look at the market through our knowledge and gained experience, we will understand that the reversal is just the question of time.
There are no markets that can move in one direction all the time! It is great to have such dreams, but in order to make money in any market, you have to ignore your wishes and be realistic.
If we look at the 4H chart and how the price has been moving during the previous weeks, we will be able to say the following:
- the price respects SMA50, and it is a good place for buying
- the price moved far from SMA50, and it tells us about the overbought market
- RSI reached the overbought zone, and it tells us about the overbought market
- MACD lines moved far from the signal level, and it tells us about the overbought market
- the price is not far from 40 000$ round number, which can become a solid resistance
- if the market gives us a reversal candlestick or chart patterns at this level, it will be a solid bearish setup.
The market will correct the price. Probably it will be even a deep correction toward 20 000$. Why?
Because big players have to fix their profit. It makes not much sense to stay with a floating profit. The profit must be fixed, and it means that big players will start to close their long positions step by step. When and where will they do it? It can be done at 40 000$ or at 50 000$, at any round number. But it will be done. After that, we will see the correction movement toward the key support levels. If closing long positions is combined with short traders from bears and panic sell of from newbie traders, we will be able to see 20 000$.
The correction movement in the daily and weekly timeframes will allow smart traders to start buying again, and it will push the price upward.
Bitcoin, like any market, can be irrational, but it doesn't mean that we have to ignore the logic and principles of proper trading. It means that we have to be disciplined and not to buy at the top. We must plan our trades better, wait for solid bullish setups, and buy the asset at a good price.
And what do you think about the upcoming Bitcoin movements?
Share your ideas in the comments below this post.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
There are no markets that can move in one direction all the time! It is great to have such dreams, but in order to make money in any market, you have to ignore your wishes and be realistic.
If we look at the 4H chart and how the price has been moving during the previous weeks, we will be able to say the following:
- the price respects SMA50, and it is a good place for buying
- the price moved far from SMA50, and it tells us about the overbought market
- RSI reached the overbought zone, and it tells us about the overbought market
- MACD lines moved far from the signal level, and it tells us about the overbought market
- the price is not far from 40 000$ round number, which can become a solid resistance
- if the market gives us a reversal candlestick or chart patterns at this level, it will be a solid bearish setup.
The market will correct the price. Probably it will be even a deep correction toward 20 000$. Why?
Because big players have to fix their profit. It makes not much sense to stay with a floating profit. The profit must be fixed, and it means that big players will start to close their long positions step by step. When and where will they do it? It can be done at 40 000$ or at 50 000$, at any round number. But it will be done. After that, we will see the correction movement toward the key support levels. If closing long positions is combined with short traders from bears and panic sell of from newbie traders, we will be able to see 20 000$.
The correction movement in the daily and weekly timeframes will allow smart traders to start buying again, and it will push the price upward.
Bitcoin, like any market, can be irrational, but it doesn't mean that we have to ignore the logic and principles of proper trading. It means that we have to be disciplined and not to buy at the top. We must plan our trades better, wait for solid bullish setups, and buy the asset at a good price.
And what do you think about the upcoming Bitcoin movements?
Share your ideas in the comments below this post.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Comment:
Do you think that such a long trade makes sense?
Comment:
It's amazing! Don't you think so?
They said:
"Bitcoin will never move down"
"No corrections!!!"
"To the Moon!!!"
Guys, where are you now?
They said:
"Bitcoin will never move down"
"No corrections!!!"
"To the Moon!!!"
Guys, where are you now?
💰COPY MY TRADES FOR FREE! Join 👉 bit.ly/41DKDBD
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
I share my personal ideas with you, supported by 14 years of trading experience and knowledge. But of course, you are better than me! You know everything! Great!
I wanted to recommend you to watch a very nice movie, "Big Short", move back to 2017-2018, and read the market reviews for Bitcoin and other altcoins. But now I think why do I need to prove anything to you? I don't want to waste my time doing such useless things.
I wish you good luck in your trading!