Bitcoin: Market Review and How to Trade Using 4H Chart
It looks like Bitcoin is not ready to correct the previous upward wave. It can be like this, and we saw it many times before when the price continued to move up even the market was overbought. Such movements are not logical, but we also have to take them into consideration.
If the price breaks the local swing high, probably we will see the strong wish from buyers to reach 12000USD. In this case, our correction will be presented by a sideways movement, which we can see right now.
Buying above 11400USD following the breakout signal, it is not a good idea. Maybe for short term trading, it can make sense. For swing traders, it can be a mistake.
I would like to wait for a breakout below the local uptrend line and a downward movement to 10500USD at least. The price reversal from this zone will be good to open long positions for day traders as well as swing traders. And I think such trades will have much more potential to become successful.
RSI is in the overbought zone, and it confirms that the market is overbought. MACD lines are going to support a possible downward movement. MACD histogram is supporting sellers right now. The same goes about DMI, which is bullish, but ADX line is moving down. It is a signal that buyers are not so strong now, and we can expect a correction movement in the bullish trend.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
If the price breaks the local swing high, probably we will see the strong wish from buyers to reach 12000USD. In this case, our correction will be presented by a sideways movement, which we can see right now.
Buying above 11400USD following the breakout signal, it is not a good idea. Maybe for short term trading, it can make sense. For swing traders, it can be a mistake.
I would like to wait for a breakout below the local uptrend line and a downward movement to 10500USD at least. The price reversal from this zone will be good to open long positions for day traders as well as swing traders. And I think such trades will have much more potential to become successful.
RSI is in the overbought zone, and it confirms that the market is overbought. MACD lines are going to support a possible downward movement. MACD histogram is supporting sellers right now. The same goes about DMI, which is bullish, but ADX line is moving down. It is a signal that buyers are not so strong now, and we can expect a correction movement in the bullish trend.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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