📈 Bitcoin: Is This A Recovery or Just A Retracement? 📉
In today’s analysis we are going to break down the price of Bitcoin and try to provide you with the relevant levels where you can benefit from in your trading journey.
In our market overview, we are going to discuss what happened recently with the price action of Bitcoin and then we will go to show you our two difference scenarios which are, the long and the short one.
Market Overview:
By looking on the daily time frame we can see that the market tumbled on the 14th of April and the price of bitcoin depreciated more than 25% in just 11 days. However, in the last two days, the market found a bottom around the 47.500 USDT level and what we can see is a move upward where the price gained value of 15%.
Long Scenario:
We will begin by our most likely scenario which is to buy this coin. As you can see from the left screenshot the market is trading inside a bullish formation. As its name says this shows that we are in a bullish market, but the market currently posted a correction count to the 47.500 USDT level. To consider a buy position for BTC, we should first wait for a break of the strong resistance around the 57.400 USD price. If this breakout was a success with a relevant price action above the 57.400 USDT mark, this will lead to a further move upward toward the previous all-time high.
Short Scenario:
In our least likely scenario, we are going to short this coin based on the following analysis. The price managed to break the ascending wedge pattern to the downside which shows a potential beginning of a reversal. If we favor a sell position what we need to wait is a retracement toward the strong resistance (57.400 USDT) and see a relevant price action below this level. We need to mention here that there is around the 57.400 USDT mark a 61.80% Fibonacci level which could signals an end of the retracement before tumbling again toward the 47.500 USDT level.
Bottom Line:
No matter what position you will take, it is important to look at the formation of the candlesticks below and above the 57.400 USDT mark because price action provides a lot of information regarding who will dominate, whether the bulls or the bears.
Good Luck & Trade Safely 🙂
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Risk Disclaimer: All trading ideas published by “collegeofpips” are for educational purposes only. These posts can help you to enhance your trading skills, but please do your own research before opening any trading position. ⚠️
In our market overview, we are going to discuss what happened recently with the price action of Bitcoin and then we will go to show you our two difference scenarios which are, the long and the short one.
Market Overview:
By looking on the daily time frame we can see that the market tumbled on the 14th of April and the price of bitcoin depreciated more than 25% in just 11 days. However, in the last two days, the market found a bottom around the 47.500 USDT level and what we can see is a move upward where the price gained value of 15%.
Long Scenario:
We will begin by our most likely scenario which is to buy this coin. As you can see from the left screenshot the market is trading inside a bullish formation. As its name says this shows that we are in a bullish market, but the market currently posted a correction count to the 47.500 USDT level. To consider a buy position for BTC, we should first wait for a break of the strong resistance around the 57.400 USD price. If this breakout was a success with a relevant price action above the 57.400 USDT mark, this will lead to a further move upward toward the previous all-time high.
Short Scenario:
In our least likely scenario, we are going to short this coin based on the following analysis. The price managed to break the ascending wedge pattern to the downside which shows a potential beginning of a reversal. If we favor a sell position what we need to wait is a retracement toward the strong resistance (57.400 USDT) and see a relevant price action below this level. We need to mention here that there is around the 57.400 USDT mark a 61.80% Fibonacci level which could signals an end of the retracement before tumbling again toward the 47.500 USDT level.
Bottom Line:
No matter what position you will take, it is important to look at the formation of the candlesticks below and above the 57.400 USDT mark because price action provides a lot of information regarding who will dominate, whether the bulls or the bears.
Good Luck & Trade Safely 🙂
-------------------------------------------------------------------------------------
Please press “Like” if you appreciate the trading idea 👍
“Follow” for more trading ideas in the future 👀
“Comment” below to share your thoughts with us and other traders 👥
-------------------------------------------------------------------------------------
Risk Disclaimer: All trading ideas published by “collegeofpips” are for educational purposes only. These posts can help you to enhance your trading skills, but please do your own research before opening any trading position. ⚠️
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