Short Term Long Trade
After making the mid-cycle high of 49K, Bitcoin entered a correction phase.
The price target of this correction could be 37K (Blue angle), but the price could drop as low as 33K (Orange angle). I have two valid Gann angles; both have recently acted as S/R levels. It is impossible to determine which angle will act as the final support level before resuming the bullish trend.
After making the 49K top, Bitcoin corrected more than 21% without making a significant HL. In the coming days, Bitcoin will make a HL. My target is 42.5k, but I will not be surprised if Bitcoin makes it higher, even as high as 45K.
Invalidations:
1. A close below 39.6K (point E in Orange) invalidates this trade Idea.
2. A sustained break above 45K invalidates the correction. However, ultimately, Bitcoin will have to break above 49K to negate my short-term bearish bias.
Trade Idea:
This trade will be active only after a candle closes above 40.2K.
Entry: 40.2K (ChoCh on the 1H).
SL: 39.6K (Candle close below).
Target: 42.5K
TP: 41.8K, 42.5K.
The price target of this correction could be 37K (Blue angle), but the price could drop as low as 33K (Orange angle). I have two valid Gann angles; both have recently acted as S/R levels. It is impossible to determine which angle will act as the final support level before resuming the bullish trend.
After making the 49K top, Bitcoin corrected more than 21% without making a significant HL. In the coming days, Bitcoin will make a HL. My target is 42.5k, but I will not be surprised if Bitcoin makes it higher, even as high as 45K.
Invalidations:
1. A close below 39.6K (point E in Orange) invalidates this trade Idea.
2. A sustained break above 45K invalidates the correction. However, ultimately, Bitcoin will have to break above 49K to negate my short-term bearish bias.
Trade Idea:
This trade will be active only after a candle closes above 40.2K.
Entry: 40.2K (ChoCh on the 1H).
SL: 39.6K (Candle close below).
Target: 42.5K
TP: 41.8K, 42.5K.
