Bitcoin is in danger zone! Where to look for a trade?
Good day everyone,
It's been a while since the last time I published an idea.
Bitcoin had a huge breakout at the end of December. At the moment we broke below the main breakout trend and we get quite some bearish retracements.
There is one very big support zone , that's the breakout zone around 18-20k usd. I expect that we'll see more retracements and bearish moves. It could retrace all the way till 18-20k usd range.
How I'm currently trading bitcoin is to pick up bounces in the support zones and close it quickly with 5 till 10% profits. I do this until we hit the 18-20k usd or when there is clear sign that the bearish trends becomes bullish again. There is one condition for taking a position. I want to see bullish candle patterns in those support ranges. That way I can put my stop-loss below the lowest candle. I just let it ride and taking small profits everytime and move my stop-loss to break-even.
There also is another thing I look at. It's the daily RSI and the moving avarage 100. When it hits around 30 RSI that would be quite a sign the short term trend is rotating from bearish to bullish very soon. In this case I probably look for a long position to hold multiple days or even weeks. In the past the moving avarage 100 on the daily chart was quite a good indicator to point out zones where tops or bottoms are made. So I'm deferentially looking around there for a short term trend reversal!
The reason for me not shorting the bitcoin is because the main trend is still up. That makes long trades easier with more potential. Especially when you see big pinbars on the 4h chart it's easy to go long and just set the stop below the candle.
Sorry for my bad English, I'm not a native speaker. Anyway good luck with your trading!
Regards
It's been a while since the last time I published an idea.
Bitcoin had a huge breakout at the end of December. At the moment we broke below the main breakout trend and we get quite some bearish retracements.
There is one very big support zone , that's the breakout zone around 18-20k usd. I expect that we'll see more retracements and bearish moves. It could retrace all the way till 18-20k usd range.
How I'm currently trading bitcoin is to pick up bounces in the support zones and close it quickly with 5 till 10% profits. I do this until we hit the 18-20k usd or when there is clear sign that the bearish trends becomes bullish again. There is one condition for taking a position. I want to see bullish candle patterns in those support ranges. That way I can put my stop-loss below the lowest candle. I just let it ride and taking small profits everytime and move my stop-loss to break-even.
There also is another thing I look at. It's the daily RSI and the moving avarage 100. When it hits around 30 RSI that would be quite a sign the short term trend is rotating from bearish to bullish very soon. In this case I probably look for a long position to hold multiple days or even weeks. In the past the moving avarage 100 on the daily chart was quite a good indicator to point out zones where tops or bottoms are made. So I'm deferentially looking around there for a short term trend reversal!
The reason for me not shorting the bitcoin is because the main trend is still up. That makes long trades easier with more potential. Especially when you see big pinbars on the 4h chart it's easy to go long and just set the stop below the candle.
Sorry for my bad English, I'm not a native speaker. Anyway good luck with your trading!
Regards
Comment:
The resistance zone is quickly declined with a huge bearish pinbar on the daily chart. Quite high probabilities that we would drop to our support zones.
