Bitcoin: The Further Market Movements and How to Use Them
Bitcoin / U.S. dollar BITSTAMP:BTCUSD
The market gave us a bearish signal when the price broke 9000.00 support level . It was a signal telling us about an opportunity to move back in the borders of the descending price channel . At the same time, we had to watch for the price action at the main line of the price channel , as it could act as the support line.
Now we can see that the line could stop the falling market, and now the price is forming a flag at the upper border of the price channel . The flag chart pattern belongs to a continuation group of patterns. It means if the local uptrend line is broken, we will get a strong confirmation for the further falling. This breakout will be good for selling, but only if you really think that short trades can be used in the crypto markets.
Also, we have to take into consideration that the local support line is at the main trend line of the descending price channel . It gives us the support zone , which also can become a starting point for a new upward movement. Why not? For this, we just need to get a price reversal and a breakout above 9000.00 resistance. This bullish signal can be used for short term buying.
As the market looks unpredictable in the short and medium term, it is better to use the proper risk and money management strategies in order to protect your capital. At the current levels, the market can move in any direction: upward, downward, or sideways. That’s why we should wait for additional signals. The breakouts above or below important levels and lines will provide us such signals, and we will be able to follow the market and get benefits from it.
Source: TW DLavrov