WHAT WILL MOST LIKELY HAPPEN
At the time of writing this Bitcoin is at 5580, At the same area is the 50 day Moving Average, the 2nd strongest MA in technical analysis. The 50 day MA acts as a resistance line right now, in order for the price to advance the price has to go over the resistance (50 day MA) if it does we will most likely go to 6300 before we hit another resistance. But what I think is the most likely scenario is that the 50 day MA will act as a strong resistance and the price will plummet down to the support (previous resistance before the break out) around 4200 and then we will retest again for the break out.
REMEMBER THIS:
Trading is a probabilities game. Technical analysis is simply used to find the best probabilities. No indicator or pattern is for sure! This means if you think the price will break out and all your indicators say so too, and for instance the probability of the break out happening is 65 percent that is good enough to buy the crypto with a stop loss. If you are right the price will go up and you sell at a desired profit and if the price falls and you were wrong, the stop loss takes you out of the trade and you take a small loss, but remember small losses are ok because if you keep trading opportunities that are 65 percent on your favor even 51% you will be a winning trader in the long run.
At the time of writing this Bitcoin is at 5580, At the same area is the 50 day Moving Average, the 2nd strongest MA in technical analysis. The 50 day MA acts as a resistance line right now, in order for the price to advance the price has to go over the resistance (50 day MA) if it does we will most likely go to 6300 before we hit another resistance. But what I think is the most likely scenario is that the 50 day MA will act as a strong resistance and the price will plummet down to the support (previous resistance before the break out) around 4200 and then we will retest again for the break out.
REMEMBER THIS:
Trading is a probabilities game. Technical analysis is simply used to find the best probabilities. No indicator or pattern is for sure! This means if you think the price will break out and all your indicators say so too, and for instance the probability of the break out happening is 65 percent that is good enough to buy the crypto with a stop loss. If you are right the price will go up and you sell at a desired profit and if the price falls and you were wrong, the stop loss takes you out of the trade and you take a small loss, but remember small losses are ok because if you keep trading opportunities that are 65 percent on your favor even 51% you will be a winning trader in the long run.