Hello Traders,
If you follow me and happened to view yesterday's analysis of Bitcoin, you can see that our target level of $42.8K was hit almost spot on with only a quick wick above it. As predicted BTC got a rejection of that level and pulled back to the $40K region.
So what's the next move for Bitcoin? (Short Trade Setup)
- I believe the next target for BTC is $37K.
- There are 2 scenarios for how BTC gets to that level.
1) BTC heads straight to that level with minimal consolidation, not allowing a good entry point for a short.
2) BTC gets a bounce to a resistance level then pulls back to $37K which would give us a good short entry point.
- If option #1 occurs we will just have to wait for BTC to hit $37K then we can enter a long.
- If option #2 occurs, follow my analysis and enter a short taking profits at $37K.
- You can see the 3 Resistance levels BTC will face if it gets a bounce.
- Enter a short at the first level and use the DCA strategy if it hits any of the other 2 levels, adding slightly more with each level that is hit.
- Your stop loss would be above the Major Resistance Zone at $44K.
- The probabilities of BTC breaking through the last resistance level at $42.8K are very small considering BTC got a massive rejection off that level.
Lastly - After BTC hits $37K I am expecting a large bounce so be ready!
Side Note... Trading is about patience. You want to wait for the chart to tell you when it's time to enter a trade, you never want to force a trade. That's the quickest way to lose money. As explained there are 2 scenarios that I see BTC facing in the coming days. You can either be patient and wait for BTC to give you a perfect setup, or you can rush into a short and gamble that it plays out. As a trader your goal is to win. You are competing with millions of other traders across the world. The only way to ensure that you win is to take your time and plan trades that give you an edge. As you can see I plan all my trades which can be very time consuming and quite often the setups don't play out, not giving me the opportunity to enter a trade. But when they do play out the gains are huge and the risk is low being as I only take high probability trades. Moral of the story is focus on quality over quantity. Patience is key.
Happy Trading and Best of Luck!
If you follow me and happened to view yesterday's analysis of Bitcoin, you can see that our target level of $42.8K was hit almost spot on with only a quick wick above it. As predicted BTC got a rejection of that level and pulled back to the $40K region.
So what's the next move for Bitcoin? (Short Trade Setup)
- I believe the next target for BTC is $37K.
- There are 2 scenarios for how BTC gets to that level.
1) BTC heads straight to that level with minimal consolidation, not allowing a good entry point for a short.
2) BTC gets a bounce to a resistance level then pulls back to $37K which would give us a good short entry point.
- If option #1 occurs we will just have to wait for BTC to hit $37K then we can enter a long.
- If option #2 occurs, follow my analysis and enter a short taking profits at $37K.
- You can see the 3 Resistance levels BTC will face if it gets a bounce.
- Enter a short at the first level and use the DCA strategy if it hits any of the other 2 levels, adding slightly more with each level that is hit.
- Your stop loss would be above the Major Resistance Zone at $44K.
- The probabilities of BTC breaking through the last resistance level at $42.8K are very small considering BTC got a massive rejection off that level.
Lastly - After BTC hits $37K I am expecting a large bounce so be ready!
Side Note... Trading is about patience. You want to wait for the chart to tell you when it's time to enter a trade, you never want to force a trade. That's the quickest way to lose money. As explained there are 2 scenarios that I see BTC facing in the coming days. You can either be patient and wait for BTC to give you a perfect setup, or you can rush into a short and gamble that it plays out. As a trader your goal is to win. You are competing with millions of other traders across the world. The only way to ensure that you win is to take your time and plan trades that give you an edge. As you can see I plan all my trades which can be very time consuming and quite often the setups don't play out, not giving me the opportunity to enter a trade. But when they do play out the gains are huge and the risk is low being as I only take high probability trades. Moral of the story is focus on quality over quantity. Patience is key.
Happy Trading and Best of Luck!