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Bitcoin Price Action Walkthrough

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forexbrokr.
@forexbrokr
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Direct from the desk of Dane Williams.



I continue to be amazed at just how technically, this BTC/USD market is trading.

As a result, I wanted to walk you through how I see the price action playing out on a few labelled charts within this blog.

Let's start with the higher time frame view, on the Bitcoin daily chart below.

BTC/USD Daily:

You can see Bitcoin printed a new high at '1', but price failed to close above our daily resistance zone.

The Bitcoin bulls then had another crack at the resistance zone at '2', but again clearly failed as they were rejected almost off the centre of our zone to the pip.

Price then moved back to our next higher time frame zone of interest at '3'. Now we're back at a zone, this is where we look to do business.

With that in mind, let's next zoom into an hourly chart and take a closer look below.

BTC/USD Hourly:

As the bears moved price lower into daily support, you can see we printed a short term area of support that we look to use as an entry if price comes back to retest.

That's exactly what happened and you can see that by using that zone to manage your risk around, there was a clear 1:3 available on the short.

To wrap up, the low just happens to be '4' from the daily chart above, exactly the $10,000 psychological level.

Clean.

Alternate Intraday Short Setup

If you filter my blog by the Bitcoin tag and go back to when BTC/USD was first breaking higher through that $10,600ish zone, you get the following intraday zone:

BTC/USD Hourly Zoomed Out:

If you had left the intraday zone drawn from '1' on your charts, look at the way that price perfectly retested it again at '2'.

This Bitcoin market is just all trading so technically clean. Pretty cool, huh?

Best of probabilities to you,

Dane.



FOREX BROKR | Hive Blog Higher time frame market analysis.

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