Bitcoin – Update to The Previous Posts
Bitcoin / Dollar BITSTAMP:BTCUSD
The market still has the potential for downward movement. In order not to confuse you, I should remind you one more time that the market conditions, the direction of the market movements can be different on different timeframes – it’s normal. If you feel uncomfortable with such type of information, it means you need to refresh your knowledge or start learning the underlying theory.
This post is an update to the previous posts. I put them in the related ideas, and you should read all my previous posts about Bitcoin , in order to get the whole picture.
The price did not develop the downward movement after breaking below 5000.00 level. The price moved back and we got a bullish divergence . The market gives us a trend reversal signal based on the 1H timeframe, and it’s a bullish signal. The higher timeframes still tell us about the possible correction movement in the structure of the uptrend. So, even if the price moves upward based on the 1H chart, it can be a short term upward movement with the target at 5300.00 resistance level . After that, the price can bounce and move downward, following the correction movement from the higher timeframes.
Also, there is a possible resistance zone formed by Moving Averages with different periods. The price can bounce from this zone too and move lower. The main thing is – for confirmation the downward movement we will need the breakout below 5000.00 support. Now, this support is important for the market and we can see how the price moves around this support.
If the market confirms the downward movement, we should be ready to see the falling to 4200.00 – 4000.00 zone where the market can be stopped and reversed. This zone will be good for buying based on reversal signals.
P.S. If you want to become a professional trader and succeed in the financial markets, you should read these 3 articles:
They will help you to move in the right direction and protect your capital.
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Source: TW DLavrov