The price reached 10 400$ support zone and in the 1H chart, we can see how it holds the market. If the price can stay above this zone, it will give a possible buying opportunity. The breakout above the local swing high will give the exact entry point. The buyers will try to reach 11 000$ one more time. If we talk about a possible long trade, it is based on the price reversal from the support. But what if the price breaks it? It will be a strong bearish signal in the direction of the downtrend. The main goals will be 10 000$ support.
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.
Like I said below when we were above 10400, do not make 'potential' bullish calls on BTC unless you're analyzing where the stock market is going first. The stock market is now crashing and therefore Bitcoin is now crashing through 10300 support.
Sadovoy_Trade
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adolphwhite7
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If it bounces strong from 10400 it should NOT be considered a significantly bullish signal if the Stock market is also not in a strong bullish posture.
DLavrov
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@adolphwhite7, why do you think there is a correlation between Stock and crypto markets? What are the same points which could push the price in the same direction?
adolphwhite7
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@DLavrov, Here in the US the stock markets and asset markets (like crypto) have been held up mainly by stimulus money and Fed Reserve money printing. Yes, World markets are very much influenced by what happens here in the US. It does not look like the US government will be providing further stimulus any time soon, so traders are less willing to take risks in the stock market and especially riskier assets like BTC. This is why Stocks and BTC are correlated. The same people who are buying Stocks to make money are the same people who are taking risky bets on BTC to make money. So when they are ready to sell their Stocks (bc of no Stimulus), they will definitely be selling their BTC. Because of the lack of stimulus, traders have be trading their Stocks and BTC for US Dollars which they perceive as a safer place to keep their wealth (vs other Foreign currencies). Therefore when the US Dollar goes up, expect Stocks and BTC (and especially Metals) to go DOWN. Make sense?