Hello everyone, in this idea we are looking at the
BTCUSD
price. We can see that the price is moving in a primary upwards trend on the monthly & weekly chart. The secondary trend on the 4 hours chart is pointing towards a possible trend-change, while the short-term trend on the 1 hour chart (as seen on the chart) already changed it's trend.
We will always focus on trading the actual price movement on the market and avoid emotions as well as wishful thinking. And of course, we are always trading with the trend. While we are looking for a first sign of a trend-change caused by the strong rejection a few days ago, we want the trend-change to be confirmed by lower lows in the short-term trend.
In the full picture, we can see the bitcoin price moving in a rising wedge pattern. This pattern develops on the chart when we are moving in a strong trend. With the higher price, we need buyers to support the higher price with buy volume. The buyers get exhausted at some point, that's where we see the smaller price jumps within the upwards trend. Many traders point to a rounding top here, which os the first sign of weakness.
We can see the sellers join the market afterwards. The rejection was caused by a possible power failure in china, where over 40% of the bitcoin miners are locted.
From a technical point of view, the price of bitcoin clearly needs a correction before continueing the upwards trend.
Do get an idea of where to consider a long position or where to increase our long position, we can look at three zones of confluence, where we might see buyers and sellers appearing on the market.
I'm expecting the bitcoin price to retrace to the short term resistance line (change of structure), followed by another price drop with a lower low towards the support zone. That's where i place my entries for a bounce or a another change of structure (continuation of the upwards trend).
cheers,
Ares
BTCUSD
price. We can see that the price is moving in a primary upwards trend on the monthly & weekly chart. The secondary trend on the 4 hours chart is pointing towards a possible trend-change, while the short-term trend on the 1 hour chart (as seen on the chart) already changed it's trend. We will always focus on trading the actual price movement on the market and avoid emotions as well as wishful thinking. And of course, we are always trading with the trend. While we are looking for a first sign of a trend-change caused by the strong rejection a few days ago, we want the trend-change to be confirmed by lower lows in the short-term trend.
In the full picture, we can see the bitcoin price moving in a rising wedge pattern. This pattern develops on the chart when we are moving in a strong trend. With the higher price, we need buyers to support the higher price with buy volume. The buyers get exhausted at some point, that's where we see the smaller price jumps within the upwards trend. Many traders point to a rounding top here, which os the first sign of weakness.
We can see the sellers join the market afterwards. The rejection was caused by a possible power failure in china, where over 40% of the bitcoin miners are locted.
From a technical point of view, the price of bitcoin clearly needs a correction before continueing the upwards trend.
Do get an idea of where to consider a long position or where to increase our long position, we can look at three zones of confluence, where we might see buyers and sellers appearing on the market.
- The resistance is located at $60.500
- The key zone is located at $54.000
- The support is located at $50.500
I'm expecting the bitcoin price to retrace to the short term resistance line (change of structure), followed by another price drop with a lower low towards the support zone. That's where i place my entries for a bounce or a another change of structure (continuation of the upwards trend).
cheers,
Ares
