Consolidation of Bitcoin. Trade Plan
Hey everyone!
Today I will share you my trading plan for the next few months.
We will look at the weekly Bitcoin chart on the Kraken, with following analysis tools:
1. Moving Averages - MA with periods 21 (red), 55 (green), 89 (gray), 200 (blue);
2. Support and resistance levels (yellow).
To begin with, I will explain what flat is.
In the flat, the price moves in a range without a clearly direction.
A flat is formed when the price is squeezed between strong support and resistance levels. This happens because neither buyers or sellers have enough strength to push the price beyond this levels, initiating a new trend. Therefore, the breakdown of the range means the end of the flat and the beginning of a new trend.
So, let's move on to the Bitcoin chart. We are interested in November 2018 and March 2020.
November 2018
After the price crash by 52% from the level of MA 21 (red), the price is squeezed in the flat. The range was between the levels of $3,400 and $4,100 (yellow). This happened because after a powerful movement, the forces of buyers and sellers were exhausted. The price range triples the majority of participants and they need some time to gain a position and push the price beyond the support and resistance levels. The breakdown of the $4,100 level (MA 21 red) of the range meant the end of the flat and the beginning of a new trend.
March 2020
After the price crash by 53% from the level of MA 21 (red), the price was again squeezed in the flat again. This time the range was between the levels of $5,800 and $7,600 (yellow). The breakdown of the $7,600 and $7,900 levels (MA 21 red) meant the end of the flat.
Now let 's move on to analyzing the current Bitcoin chart.
May 2022
I am still waiting for the price declining to the level of $22000 - MA 200 (blue). Despite the fact that we will see this price or not, it is obvious that after the current powerful movement, the price will again be squeezed in the flat. I see a range between the levels of $24500 and $37800, which we can follow in few months.
Trade Plan
Trading on a rebound from the flat borders in the expectation of continued consolidation. When you trading in a flat, the main task is to increase the position before the upcoming price exit from the range. In our case, the range can be divided in half by defining the average level at $31,000. Accordingly, I will buy at any prices below $30,000, and sell at any prices on the rebound up to the level of $37,800. This way I will be able to increase the amount of the asset. If you follow my plan, I recommend setting stop losses beyond the lower limit of the range to control the risk. The end of my trading plan will mean the exit of the price above the level of $37,800 and MA 21 (red).
Today I will share you my trading plan for the next few months.
We will look at the weekly Bitcoin chart on the Kraken, with following analysis tools:
1. Moving Averages - MA with periods 21 (red), 55 (green), 89 (gray), 200 (blue);
2. Support and resistance levels (yellow).
To begin with, I will explain what flat is.
In the flat, the price moves in a range without a clearly direction.
A flat is formed when the price is squeezed between strong support and resistance levels. This happens because neither buyers or sellers have enough strength to push the price beyond this levels, initiating a new trend. Therefore, the breakdown of the range means the end of the flat and the beginning of a new trend.
So, let's move on to the Bitcoin chart. We are interested in November 2018 and March 2020.
November 2018
After the price crash by 52% from the level of MA 21 (red), the price is squeezed in the flat. The range was between the levels of $3,400 and $4,100 (yellow). This happened because after a powerful movement, the forces of buyers and sellers were exhausted. The price range triples the majority of participants and they need some time to gain a position and push the price beyond the support and resistance levels. The breakdown of the $4,100 level (MA 21 red) of the range meant the end of the flat and the beginning of a new trend.
March 2020
After the price crash by 53% from the level of MA 21 (red), the price was again squeezed in the flat again. This time the range was between the levels of $5,800 and $7,600 (yellow). The breakdown of the $7,600 and $7,900 levels (MA 21 red) meant the end of the flat.
Now let 's move on to analyzing the current Bitcoin chart.
May 2022
I am still waiting for the price declining to the level of $22000 - MA 200 (blue). Despite the fact that we will see this price or not, it is obvious that after the current powerful movement, the price will again be squeezed in the flat. I see a range between the levels of $24500 and $37800, which we can follow in few months.
Trade Plan
Trading on a rebound from the flat borders in the expectation of continued consolidation. When you trading in a flat, the main task is to increase the position before the upcoming price exit from the range. In our case, the range can be divided in half by defining the average level at $31,000. Accordingly, I will buy at any prices below $30,000, and sell at any prices on the rebound up to the level of $37,800. This way I will be able to increase the amount of the asset. If you follow my plan, I recommend setting stop losses beyond the lower limit of the range to control the risk. The end of my trading plan will mean the exit of the price above the level of $37,800 and MA 21 (red).
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน