Bitcoin High Confluence Demand Zone
تم تحديثه
Basic Premise:
My basic premise is that Bitcoin is in an uptrend. I consider the recent pullback as a healthy correction, nothing more.
Support and Reversal Zone:
ATM, the main challenge is to identify the best probable entry for continuation to the upside.
Broadly, the possible reversal zone is between 25,750 USDT to 23,340 USDT for these reasons:
1. 25,750: Price left a wick to the downside that I expect will get filled. (Check out CrypNuevo on Twitter for more on that)
2. 24,600: this level is the 0.5 fib retracement.
3. 23,340: This Level is the 0.618 fib retracement.
The Challenge:
The range of the support zone is too wide. Personally, I am not willing to place a trade with such a range because the possible loss until invalidation is almost 2500 USDT. Therefore, we need the narrow down the range.
Demand Zone:
On the Bitcoin rally of March 10th- 17th Bitcoin formed a demand zone (Rally, Base, Rally). This zone is between 23,882 USDT and 24,658 USDT. This Zone has the confluence of the Diagonal trendline, the demand zone and the fib levels. I fully expect price to retrace from this level and continue the uptrend (Shout out to NFX Trader on YT, his videos introduced me to S&D trading).
If worse comes to worse, you can cut the trade for a relatively small loss and look for another entry.
Strategy:
I think the best course of action is to ladder into the trade. For example:
X: on 25,750 (wick fill).
2X: on 24,680 (0.5 fib and upper range of demand zone)
4X: on 23,317 (0.618 fib and lower range of demand zone).
Tip: Use the RSI. Bitcoin reacts nicely to the oversold level (30 or below) on the daily chart.
Target:
After the previous pullback Bitcoin reached just above the 1 fib extension. I think we can conservatively expect the same or more. Assuming Bitcoin finds support on 24,660 USDT, target is at least 38,592 USDT. In trading, as in life, nothing is certain, but this is my target.
Trade Idea:
Entry: 24,660
SL: 23,140
TP: 38600
NFA.
Best wishes to all.
Feedback will be appreciated.
My basic premise is that Bitcoin is in an uptrend. I consider the recent pullback as a healthy correction, nothing more.
Support and Reversal Zone:
ATM, the main challenge is to identify the best probable entry for continuation to the upside.
Broadly, the possible reversal zone is between 25,750 USDT to 23,340 USDT for these reasons:
1. 25,750: Price left a wick to the downside that I expect will get filled. (Check out CrypNuevo on Twitter for more on that)
2. 24,600: this level is the 0.5 fib retracement.
3. 23,340: This Level is the 0.618 fib retracement.
The Challenge:
The range of the support zone is too wide. Personally, I am not willing to place a trade with such a range because the possible loss until invalidation is almost 2500 USDT. Therefore, we need the narrow down the range.
Demand Zone:
On the Bitcoin rally of March 10th- 17th Bitcoin formed a demand zone (Rally, Base, Rally). This zone is between 23,882 USDT and 24,658 USDT. This Zone has the confluence of the Diagonal trendline, the demand zone and the fib levels. I fully expect price to retrace from this level and continue the uptrend (Shout out to NFX Trader on YT, his videos introduced me to S&D trading).
If worse comes to worse, you can cut the trade for a relatively small loss and look for another entry.
Strategy:
I think the best course of action is to ladder into the trade. For example:
X: on 25,750 (wick fill).
2X: on 24,680 (0.5 fib and upper range of demand zone)
4X: on 23,317 (0.618 fib and lower range of demand zone).
Tip: Use the RSI. Bitcoin reacts nicely to the oversold level (30 or below) on the daily chart.
Target:
After the previous pullback Bitcoin reached just above the 1 fib extension. I think we can conservatively expect the same or more. Assuming Bitcoin finds support on 24,660 USDT, target is at least 38,592 USDT. In trading, as in life, nothing is certain, but this is my target.
Trade Idea:
Entry: 24,660
SL: 23,140
TP: 38600
NFA.
Best wishes to all.
Feedback will be appreciated.
ملاحظة
ATM, I see no reason for change. On May 27th Bitcoin almost hit my first entry of 25,800 but missed it by 50$. Considering that price did not strongly react to this price, I think it is better to focus on lower prices for now. Next possible supports are at:
1. 25,200$ (+- 200$)
2. 24,600$
3. 23,860$
Keep an eye on the RSI. Until now it hasn’t dropped below 37. If and when it reaches the 30 level it may be a good bottom sign, IMO.
Best wishes.
تم فتح الصفقة
This idea is still valid. however. I am not sure we'll go below the 25,500 area. I am watching the trendline. Should Bitcoin touch and hold the trendline, I think it's a long trigger.
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