Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Bitcoin’s Current Market Situation
I entered this trade because Bitcoin is establishing new support levels following yesterday’s short-term crash. The recent price action has shown some resilience as the market stabilizes after the dip. This could indicate that buyers are stepping in to prevent further losses and build a foundation for a potential rebound.
However, my confidence in this trade is not very strong. A clearer picture emerges when we zoom out and examine the 15-minute timeframe. By plotting the trendline, it is evident that Bitcoin failed to maintain its upward trajectory. Instead, it has reverted to previous levels, a concerning sign of weakness. The initial bounce has lost momentum, and the bears may still be in control. This lack of sustained upward movement makes the current situation precarious.
Given the uncertainty, I have set my take-profit levels at more conservative, realistic levels. The market’s indecisiveness suggests that waiting and observing further developments is safer, especially for conservative traders. However, if you are more of a risk-taker like me, there’s an opportunity to enter Bitcoin now, but only in a small position. This approach allows for flexibility—keeping the risk low until we see a more decisive confirmation of the next directional move.
On the daily timeframe, we are at a critical juncture. Bitcoin is nearing the tip of a triangle pattern, and the price is coiled tightly. This compression signals that a significant move is imminent. The big question is: will Bitcoin break out to the upside, confirming a bullish reversal, or will it collapse further, continuing the downward trend? The next movement will be crucial and could set the tone for the coming days or weeks.
Final Thoughts
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