Yahoo Finanzen Bitcoin Retrace: Focus On Levels, Not Hype.
If you want to be prepared for the next quality opportunity, and make better decisions, it would serve you well to stop listening to people, and start focusing on what the market is saying: the price action around particular support levels.
I have been pointing out the 44K and 41K support levels for weeks while everyone was hyping about “alt season”. It’s not about knowing “when” the market will reach a level, it is all about being prepared IF it reaches a level. 44K was showing some support and has been compromised which brings us to the 41K AREA.
Levels by themselves are highly random and require further evaluation before taking any action. With a lower high established off of the 48K area, structure favors a lower low which can lead to a retest of the 37K support over the next few days. Even in the face of the “bear” market as hyped by your favorite fake gurus, I am interested in a swing trade long.
Stepping in front of bearish momentum is a high risk thing to do so instead, I want to see price stability develop first in the form of a double bottom formation, a higher low etc. A single candle reversal is not enough when the broader structure is not favorable.
Keep in mind this type of stability can take a few days or even a week to unfold. Patience, sticking to your rules and not reacting to the obvious is key in these situations. The broader trend is still bullish, while the shorter term structure is still in a larger consolidation. This is NOT a bear market yet.
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This article was originally posted on FX Empire
