A fatal mistake to avoid making at this point with Bitcoin
A fatal mistake to avoid making at this point with Bitcoin
Twice during its daily volatility (i.e. daily highs and lows), Bitcoin tried not to fall below the $57,000 price (testing to hold the 57k support).
- But it failed and the price fell below 57K ((breaking the support and turning into resistance) and now the bitcoin price is heading to test maintaining the 50k support and maybe 48k.
Although the current situation looks tempting for weekly (swing) trading,
- However, there is no clear indication confirming the success of such trades.
What is the signal that if it occurs you can enter into this type of weekly trade.
Understanding the cryptocurrency market is the most important factor in making your decision to trade and enter deals.
Some argue for their reliance on technical analysis of Bitcoin on smaller time frames that the current price structure is bearish and that the potential for downside is stronger than upside.
- What confuses the weekly traders is that the price is now looking for a bottom or a support area; Since they use weekly oscillators that do not take into account the wider time frames.
- Yes, the small time frames indicate a bearishness, but when we expand the view to the larger time frames, which they often overlook, we will find that the price is looking for a bottom from which to go up.
Falling on short time frames is just a correction of price on big time frames.
- This means, that as soon as the price drops to the support or bottom it is looking for (eg 50k price), the currency's bullish activity begins.
But is this bullish activity safe for deals?
- Before reverting to the bullish activity following the recent bearish structure, more indicators should be taken into consideration before taking any risk.
- that is, for example, you can not enter a trade based on the hammer pattern only, the rise after the occurrence of this pattern is not strong in these times of market situation.
- You should wait for the price structure to achieve stability, such as a double bottom or a bigger bottom than a bottom after it successfully tested the expected support.
Many traders fall into the trap of being impatient, fearing that they will “miss the train”.
- Many in the previous period entered the market very early, and bought currencies based on the recommendations of non-professionals, and then the price continued to fall.
- Yes, the price will rise, but the entry area and when to enter the market is what we know from technical analysis, after confirming with several analyzes and indicators that the price finished the correction and succeeded in testing some support and established a strong footing on the support price.
Another mistake that you should avoid making is not to make your actions an immediate reaction to what is happening or what you see in price changes or surprising actions based on expectations, especially if this expectation contradicts the market analysis on the broader time frames.
Corrections in the financial markets are very confusing, especially if you do not follow a certain set of rules and have a clearly defined strategy.
Technical analysis provides methods for measuring risk, evaluating expectations and probabilities, and formulating a set of rules about market behaviour.
Earning money is not a strategy, it is an expected outcome that comes with associated risk.
My rules help me determine which possibilities are more likely and less risky in an objective way that helps reduce my thoughts and views.
- What I see now on the chart is that the price is looking for a bottom just below 5500K.
Twice during its daily volatility (i.e. daily highs and lows), Bitcoin tried not to fall below the $57,000 price (testing to hold the 57k support).
- But it failed and the price fell below 57K ((breaking the support and turning into resistance) and now the bitcoin price is heading to test maintaining the 50k support and maybe 48k.
Although the current situation looks tempting for weekly (swing) trading,
- However, there is no clear indication confirming the success of such trades.
What is the signal that if it occurs you can enter into this type of weekly trade.
Understanding the cryptocurrency market is the most important factor in making your decision to trade and enter deals.
Some argue for their reliance on technical analysis of Bitcoin on smaller time frames that the current price structure is bearish and that the potential for downside is stronger than upside.
- What confuses the weekly traders is that the price is now looking for a bottom or a support area; Since they use weekly oscillators that do not take into account the wider time frames.
- Yes, the small time frames indicate a bearishness, but when we expand the view to the larger time frames, which they often overlook, we will find that the price is looking for a bottom from which to go up.
Falling on short time frames is just a correction of price on big time frames.
- This means, that as soon as the price drops to the support or bottom it is looking for (eg 50k price), the currency's bullish activity begins.
But is this bullish activity safe for deals?
- Before reverting to the bullish activity following the recent bearish structure, more indicators should be taken into consideration before taking any risk.
- that is, for example, you can not enter a trade based on the hammer pattern only, the rise after the occurrence of this pattern is not strong in these times of market situation.
- You should wait for the price structure to achieve stability, such as a double bottom or a bigger bottom than a bottom after it successfully tested the expected support.
Many traders fall into the trap of being impatient, fearing that they will “miss the train”.
- Many in the previous period entered the market very early, and bought currencies based on the recommendations of non-professionals, and then the price continued to fall.
- Yes, the price will rise, but the entry area and when to enter the market is what we know from technical analysis, after confirming with several analyzes and indicators that the price finished the correction and succeeded in testing some support and established a strong footing on the support price.
Another mistake that you should avoid making is not to make your actions an immediate reaction to what is happening or what you see in price changes or surprising actions based on expectations, especially if this expectation contradicts the market analysis on the broader time frames.
Corrections in the financial markets are very confusing, especially if you do not follow a certain set of rules and have a clearly defined strategy.
Technical analysis provides methods for measuring risk, evaluating expectations and probabilities, and formulating a set of rules about market behaviour.
Earning money is not a strategy, it is an expected outcome that comes with associated risk.
My rules help me determine which possibilities are more likely and less risky in an objective way that helps reduce my thoughts and views.
- What I see now on the chart is that the price is looking for a bottom just below 5500K.
