The price couldn't break the resistance zone formed by SMA200 and 11 000$ resistance level. We got the price reversal with a further downward movement. The price broke SMA50 and it gave a solid bearish signal. So, what's next?
The nearest support zone is at 10 300$ level. If the price bounces from it, probably we will see a new upward movement with a new attempt to break 11 000$ resistance. If the price breaks the support zone, the next one will be at 10 000$. The price reversal from that zone looks like a very interesting buying opportunity.
I would like to open new long positions for swing trades using 10 000$ and reveal signals from the hourly charts. And how do you plan to trade in this market? Share your trading ideas in the comments!
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.
I am still seeing a strong correlation between BTC and the stock market; and especially a very strong reverse correlation between BTC and the US Dollar. Can you explain why you do not see this correlation as relevant? I don’t think BTC TA can be done properly without considering this correlation.
DarkWaveHunter
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Not agree. MACD is starting to intensify and RSI is just reached the low levels that could lead to strong sell pressure. Market sentiment shows high fear and DXY is getting strong while commodities facing strong drop.
DLavrov
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@DarkWaveHunter, MACD shows that there is a downward movement and nothing more. There are no indicators that can push the price up or down. They just show the market situation in a simple way. If the price reverses from the support, MACD will support that reversal.
DarkWaveHunter
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@DLavrov, You are right, indicators shows the current state, but it's like the Newton's laws. Current state tends to stay unless something force the other direction. Statistically speaking when RSI reaches this level there is bigger possibility to see heavy drops than not.
After all, I don't use any indicators and I use my own price action algorithm. So I don't defend using them, but if anyone wants to use them I think this vision is among the practical ones.
What about that Futures gap at around 9600, wouldn't you think its risky to buy if price is at 10k ao close to the gap?
DLavrov
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@Kobass, I have no ideas about futures. I don't care as I focus on the exact market and the exact signals. FA, other markets - they are not so important.
EinsteinLabs
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$9700 rebound back to 10300 then back down to $9100. $9100 is the floor too many over leveraged longs to wipe out below 10k. FYI did you see the stock market? DJ is down 700 points in 2 hours. This will be the biggest stock market crash in history over next few months. Bitcoin will follow we are headed to 9k range eventually until stability is shown in the stock market. This is the secondary Covid wave.