As you can see on the daily BTC chart at the moment, daily exponential support has remained significantly strong. Although, when we zoom out to the weekly chart, we notice that weekly exponential resistance has remained significantly strong also. With a weekly equilibrium pattern also in play, trading conditions are not looking favourable until one of these exponential forces break.
Although no opportune trading opportunities are present with BTC right now from my perspective, the longer this tight range continues for, the more reward there will be upon a break to the upside or downside. These scenarios also allow us to clearly establish significant support and resistance areas to create plans accordingly. Below are the two plans I have at the moment in anticipation for either a break bearish or bullish:
1 - Bullish BTC breaks through weekly exponential resistance zone with significant daily volume and lack of selling pressure (3950-4000USD)
In this scenario, I would start entering long positions in anticipation for a test of 4188USD.
2 - Bearish BTC loses daily exponential support (3790-3850USD zone)
In this scenario, I would start entering short positions in anticipation for a test of 3654USD.
Many traders like to look at patterns from years ago to speculate on future price action, I myself prefer to just patiently wait for favourable trading scenarios where I can ideally trade the macro trend and mitigate risk as much as possible through effective risk management strategies. Trading right now for me is too risky in the cryptocurrency market until a direction is more clear.
I am the unemotional, devotional trader.
Although no opportune trading opportunities are present with BTC right now from my perspective, the longer this tight range continues for, the more reward there will be upon a break to the upside or downside. These scenarios also allow us to clearly establish significant support and resistance areas to create plans accordingly. Below are the two plans I have at the moment in anticipation for either a break bearish or bullish:
1 - Bullish BTC breaks through weekly exponential resistance zone with significant daily volume and lack of selling pressure (3950-4000USD)
In this scenario, I would start entering long positions in anticipation for a test of 4188USD.
2 - Bearish BTC loses daily exponential support (3790-3850USD zone)
In this scenario, I would start entering short positions in anticipation for a test of 3654USD.
Many traders like to look at patterns from years ago to speculate on future price action, I myself prefer to just patiently wait for favourable trading scenarios where I can ideally trade the macro trend and mitigate risk as much as possible through effective risk management strategies. Trading right now for me is too risky in the cryptocurrency market until a direction is more clear.
I am the unemotional, devotional trader.
As stated in my bullish scenario, a position would only be entered upon a bull break with high volume. As we can see from the chart, this did not occur.