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BTC/USD - Bitcoin Buyers Step in to Retake Support

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forexbrokr.
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Direct from the desk of Dane Williams, exclusive to leofinance.io


Key Takeaways:

  • Bitcoin buyers step in and retake daily support
  • Higher time frame bullish trend was never in doubt, right? ;)
  • Bias back to longs, but won't risk trading the same zone that's already given a failed setup.


Bitcoin Technical Analysis

While the weekend price action in Bitcoin wasn't good for our day trading shorts, boy has the market shown some strength here.

I go on about how any price action above daily support zones is nothing more than noise and when you take a look at the updated daily chart below, you'll see that STILL, all Bitcoin daily zones remain in tact:

BTC/USD Daily:

As you'll know after getting stopped out on any potential shorts (soz) as price went through the zone, it's not a perfect hold.

But looking at that daily chart above, it certainly passes the eye test for the support zone holding.

Only a few long daily wicks went through the zone, but price failed to make any sort of significant close below.

The bulls swooped in and bought with STRENGTH.

In hindsight, I really underestimated the fact that Bitcoin is in a strong higher time frame bullish trend.

Shorting in the midst of these conditions, even on momentum driven by FUD was always going to be risky and I paid the price.

My bias now switches back to bullish, but with the chop that we've seen through the 50K daily zone, I won't be day trading another retest of this zone.

For full transparency, here's an update on my stopped-out short setup from the post I linked to in the opening paragraph above.

BTC/USD Hourly:

See what I mean about the intraday chop?

Just a bit rough and no need to keep giving money back on the same setup twice.

Hope you enjoyed your weekend :)

Best of probabilities to you.



Data to Watch:

  • Not applicable on decentralised cryptocurrency markets.


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