Hello traders,
Here we have BTC/USD on the 4H chart.
BTC/USD has been trading the downside considerably after a peak ignited a correction of the 16th January. Price has recently been trading within a structure since between a side-wards resistance line, and a horizontal support level that has recently come into play.
Price has bounced on horizontal support. When price was testing the support previously it was making lower highs. But on the last retest of support on 6th February, it is having clear a higher high, which indicates bullish momentum. The side-wards line is very likely to be retested as support.
I am expecting Bitcoin to begin an up move. Before this it's highly likely that price action will retest the side-wards resistance line as a support at 6610 before the up move begins.
This trade could play out in 2 ways, I have outlined these below:
-Price successfully breaks out, and retests the side-wards resistance line at 6610. Price then has an up move to the target zone at 12110.
-Price breaks impulsively to the upside. It ignores structure retesting and goes to the upside target at 12110.
Bare in mind, that a retest of side-wards resistance turned support makes this trade significantly more reliable.
If price retests the side-wards resistance turned support and breaks about the 20 moving average before correcting, this is an impulsive state.
Here we have BTC/USD on the 4H chart.
BTC/USD has been trading the downside considerably after a peak ignited a correction of the 16th January. Price has recently been trading within a structure since between a side-wards resistance line, and a horizontal support level that has recently come into play.
Price has bounced on horizontal support. When price was testing the support previously it was making lower highs. But on the last retest of support on 6th February, it is having clear a higher high, which indicates bullish momentum. The side-wards line is very likely to be retested as support.
I am expecting Bitcoin to begin an up move. Before this it's highly likely that price action will retest the side-wards resistance line as a support at 6610 before the up move begins.
This trade could play out in 2 ways, I have outlined these below:
-Price successfully breaks out, and retests the side-wards resistance line at 6610. Price then has an up move to the target zone at 12110.
-Price breaks impulsively to the upside. It ignores structure retesting and goes to the upside target at 12110.
Bare in mind, that a retest of side-wards resistance turned support makes this trade significantly more reliable.
If price retests the side-wards resistance turned support and breaks about the 20 moving average before correcting, this is an impulsive state.
