Is Bitcoin Setting a Bull Trap or About to Push Higher?

in #bitcoin5 years ago


The price action on bitcoin has been interesting of late. Just when we got a nasty reversal candle on the weekly chart after the parabolic move higher price came down to the first support level and rallied hard.

Where do we go?


That is the 20,000 dollar question.

If you look at the weekly chart above you will see what I mentioned in the opening sentence of the post. Talk about mixed signals! I had 9800 as a target and the first support, the reversal pattern (on daily chart) coupled with some follow through is making that nasty candle from last week obsolete.

So the question is. Is this real or is it a bull trap. It has been quite some time since I was this conflicted about the price action.


As you can see the daily chart is looking positive at the moment. It surpassed the 11,600 level and has since tested it intraday and bounced off it higher.

In the end btc really needs to crack 12,300 to have not created a lower higher after making a lower low.

That level could act as resistance, especially after running up from 9800. At this point I'm just holding my long-term bag as I missed the trade entry at both 9800 and 10,800.

Trading Around a Position


This is why I personally like to hold a core position and then trade around it so that I don't have to be stressed about getting in or out when the picture isn't completely clear.

 

 



Published by ScaredyCatGuide

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https://mentormarket.io/cryptocurrencies/scaredycatguide/is-bitcoin-setting-a-bull-trap-or-about-to-push-higher/


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that indeed is the critical question!

As long as we stay above 4k, i am assuming bull market

Interesting, I do suppose 4k is the crap hit the fan price.

weekly 200 EMA is at 4900, If there is no bounce there, then SHTF

I forget about the 200 day, see price needs to back and fill for sure. I think we could see price bounce around 10-12k range for some time (most bullish scenario) and I really think I will get my chance to buy at 8,500. Crazy to think I may have a few thousands points to the downside on an entry like that if it comes.

Thanks for analysis of btc i wish it go to moon sooon.

It's easy to make the argument for a V-bottom breakout (just need a close above the overhead resistance to confirm, preferably on high volume). Certainly possible, but I don't like the big gap between price and the 100 and 200 daily moving averages. I'd actually prefer that price stall here for a bit and allow those averages some time to close that space, maybe form a nice ascending triangle at this level, or something along those lines.

On another note, I'm really digging this steemleo thing. Hopefully it really gets rolling. I'd love for this to grow into a large trading/ investing community where we can all share our trading ideas.

yeah, I'm in the same boat would love to see consolidation in the 10-12k range for a while.

It is really hard to say what is going to happen next but one thing is for sure- by the end of the year we will see more gains.

I also think that the Facebook Libra news really hyped the market prematurely especially considering that they won't really have anything to do with Bitcoin.

The market dominance that BTC is showing concerns me more than anything else right now since the my portfolio is extremely alt-coin heavy right now.

Yeah, I'm alt coin heavy as well. :-(

I guess the newest weak hands will be tested soon enough but I suspect that not many have been created given that I feel they probably know what they got into this time around. I hoping for ETH and/or LTC to take the lead for a bit just as they did to begin the year.

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Would love to see LTC make another run, hold a good chunk.

It's a gutsy move at this point @scaredycatguide, seemingly not much upside for a heavier risk with a smallish flip for an upside. I actually like exploring possibilities for altcoins at this point with BTC dominance where it is right now. Less downside in my opinion if you are paying close attention. Then again you can buy into that social network blockchain trading just barely above 3 satoshis right now. Do a historical look at steem and see what has happened when the price to BTC has approached anywhere near there. Yes very perplexing.

Agreed yeah, if the risk-reward isn't minimum 2 to 1 I don't take a positions. No new entries for BTC for me currently.

As for steem, 5 sats was the all time low on my charts (bittrex) and I expected some kind of bounce there. 3 sats is fresh new territory from my info and things look ugly. Would love more info on what you are seeing.