Hello Traders!
First off, If you have any questions feel free to comment or message me. I know trading can be difficult and I would rather you message me about a trade setup than make a mistake and lose out. I'm pretty good about replying so I'll try and get back to you as quick as I can!
**As I'm sure you are aware, Bitcoin had a nice pump today from the $38K region almost up to $41K at the time of this post. And I bet you're wondering what the heck does this mean for BTC?!
- Well the truth is, we really don't know yet...
- With trading you want to see clearly defined chart formations, patterns, directional bias, levels hit, etc. As of right now on the micro we really don't have a clear picture.
- It's hard to make a high probability prediction for the micro when BTC is ranging like this.
**So then how to we make an accurate prediction in a situation like this!?
- When you have no clear direction bias on the micro, the easiest way to try and make sense of it all is to zoom out and take a look at the Macro time frame.
- Look at the 4 Hour and/or Daily chart and analyze the chart from the macro perspective.
**What's next for BTC?
- Zooming out we can see that BTC has been in an overall downtrend, creating lower lows along the way.
- This morning BTC was sitting below the support level it's been trading on for the past week or so, it broke above today (which is bullish) however if it closes back below it on the daily that is another bearish signal.
- Since January on the macro BTC has been trading in a Bear Flag formation (Bearish) and since the $48K high a couple weeks ago has been nearly in a non stop downtrend. - 16 of the last 19 days have been Red!
- Without going into too much more detail, the fact remains... the probabilities favor further downside continuation.
**Now it's possible that BTC continues this rally for a couple more days, but until the 50MA + the $43K local resistance is broken and confirmed above, BTC is Bearish and expect downside continuation.
^^Possible Position Entries^^
- Right now I am not in any open positions, I'm waiting to see what happens over the coming days.
- 2 Levels that I have my eyes on are the $43K resistance for a possible short, and the $37K support for a possible long.
--Final Note--
- The analysis that I do are for the current market conditions at the time of creating the posts. The market changes on a daily basis and so do the trades/setups that I post. I will try to start and add any invalidating factors or create an update post for any trade setups that are no longer valid.
Best of Luck Trading!
First off, If you have any questions feel free to comment or message me. I know trading can be difficult and I would rather you message me about a trade setup than make a mistake and lose out. I'm pretty good about replying so I'll try and get back to you as quick as I can!
**As I'm sure you are aware, Bitcoin had a nice pump today from the $38K region almost up to $41K at the time of this post. And I bet you're wondering what the heck does this mean for BTC?!
- Well the truth is, we really don't know yet...
- With trading you want to see clearly defined chart formations, patterns, directional bias, levels hit, etc. As of right now on the micro we really don't have a clear picture.
- It's hard to make a high probability prediction for the micro when BTC is ranging like this.
**So then how to we make an accurate prediction in a situation like this!?
- When you have no clear direction bias on the micro, the easiest way to try and make sense of it all is to zoom out and take a look at the Macro time frame.
- Look at the 4 Hour and/or Daily chart and analyze the chart from the macro perspective.
**What's next for BTC?
- Zooming out we can see that BTC has been in an overall downtrend, creating lower lows along the way.
- This morning BTC was sitting below the support level it's been trading on for the past week or so, it broke above today (which is bullish) however if it closes back below it on the daily that is another bearish signal.
- Since January on the macro BTC has been trading in a Bear Flag formation (Bearish) and since the $48K high a couple weeks ago has been nearly in a non stop downtrend. - 16 of the last 19 days have been Red!
- Without going into too much more detail, the fact remains... the probabilities favor further downside continuation.
**Now it's possible that BTC continues this rally for a couple more days, but until the 50MA + the $43K local resistance is broken and confirmed above, BTC is Bearish and expect downside continuation.
^^Possible Position Entries^^
- Right now I am not in any open positions, I'm waiting to see what happens over the coming days.
- 2 Levels that I have my eyes on are the $43K resistance for a possible short, and the $37K support for a possible long.
--Final Note--
- The analysis that I do are for the current market conditions at the time of creating the posts. The market changes on a daily basis and so do the trades/setups that I post. I will try to start and add any invalidating factors or create an update post for any trade setups that are no longer valid.
Best of Luck Trading!