Bitcoin: Trend Reversal Signal in Strong Bullish Market
Bitcoin / Dollar BITFINEX:BTCUSD
The 1H chart tells us about a possible reversal. We have a bearish divergence and a breakout below the local uptrend line. These signals belong to a trend reversal group. Maybe we won’t see the deep falling, but the downward movement to SMA100, SMA200 will be possible. At the same time, the 1H timeframe will be able to keep the bullish structure. The downward movement will be confirmed when the price breaks the local swing low.
If we talk about a possible buy opportunity, it should be based on a confirmed reversal signal from SMAs or the zone between them.
Another bullish signal will be based on a breakout above the local swing high at 8870.00 level. But for this, the price will have to move above the uptrend line. I don’t think about this bullish signal as the reason to buy. The market is not far from the local top. Also, we have another resistance level at 9000.00, which can stop and reverse a new upward movement. If we talk about buying, the good entry zone will be between 8400.00 and 8000.00 levels.
The daily timeframe will provide us other signals, which we have to take into consideration for medium and long term trading. The market can continue the upward movement, as well as the crypto markets, like to move against the logic and rules. It is not always, but time by time, we can see such behavior. So, be ready and plan your trades before opening any positions. Use the right money management.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov