Bitcoin: Watch Low 90K Test For Long Setup.

Bitcoin is near the lower part of its broader bullish consolidation. This means swing trade shorts are higher risk, while longs lower risk. How you navigate this area depends on the time frame you use to evaluate your trade signal and risk. The key location to watch for the coming week is the 93,500 to 92,500 support AREA which is part of a larger support zone. A bullish retrace from this area offers potential of at least 2 to 3K points which is a conservative estimation. IF this support area gives way (decisive break of 90K), then all bets are off until new levels establish themselves.

Recent movements have been wild thanks to all of the drama in the news. People who consume and react to news events will often find themselves stuck in painful positions. Chasing news, reacting to dramatic price movements and/or random signals/patterns on charts in leads to random results. You want to capitalize on participants who make these mistakes by anticipating their behavior and this is best done by evaluating ONLY TWO market components: support/resistance and trend. As simplistic and obvious as this may sound, this is the information that helps you build a more accurate lens to judge a market.

Both of these components depend on the time fame you choose to operate. For this analysis, that is the swing trade time frame. Recent trend can be categorized as range bound. That has been clear for weeks now. In range bound environments, support and resistance levels have a greater tendency to HOLD until one side eventually breaks If we zoom out on Bitcoin (monthly) we can see this consolidation is likely a broader Wave 4, or a broader higher low. IF
I have to bet on a side, it would be bullish. For me this means expect more for longs, ESPECIALLY from major support areas and LESS from shorts, ESPECIALLY from resistance areas on this time frame.

For example: with this context in mind and planning to take a swing trade, having a price point in mind (93K AREA see arrow), you now WAIT for confirmation in the anticipated area. IF it appears, risk can be defined around 89,500. That's 3.5K points which may sound like a lot, but the profit potential if it bounces is AT LEAST 4 to 5K points based on the current levels. How you manage this all depends on your risk tolerance and account size but in my opinion it is a risk worth taking.

Thank you for considering my analysis and perspective.