Bitcoin: Why 14 000$ Is Important Resistance? How not to Trade!
Aktualisiert
Newbie traders like to buy at tops and open short trade at bottoms. It is their trading style and it is one of the reasons why traders fail. They don't want to take into consideration signals from markets and indicators. They want to follow their wishes and see what they want to see.
"Bitcoin will go to the Moon!"
"Bitcoin will reach 20 000$!"
"Bitcoin will continue the upward movement!"
But what about the exact bearish signals which we have at the strong resistance zone? What about RSI which reached the overbought zone and confirms the price reversal? What about a bearish signal from MACD histogram? What about a possible bearish signal from MACD?
How can we ignore these solid bearish signals?
Also, let's make it clear, why 14 000$ is so important for the market. Just look at the left side of the chart. You can see how 14 000$ resistance stopped and reversed a strong upward movement had started from 3000$ support! Why do you expect that this time the price breaks it and move up?
I ask these questions as I see traders believing in the further upward movement!
I think we will be able to talk about the continuation of the uptrend if we get a consolidation below 14 000$.
Look at the price action below 10 000$. This level also was important for the market. The price reached it and couldn't break it after several attempts. We got a consolidation in the borders of the triangle. When the price broke the upper line of the triangle, it gave us a solid bullish signal. The price moved upward, broke 10 000$ resistance, and reached 12 500$. After retesting 10 000$ as new support, we saw a new upward movement toward 14 000$. The same pattern will be workable at 14 000$ as well. But now we should expect a pullback toward 12 500 - 12 000$ support zone.
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.
"Bitcoin will go to the Moon!"
"Bitcoin will reach 20 000$!"
"Bitcoin will continue the upward movement!"
But what about the exact bearish signals which we have at the strong resistance zone? What about RSI which reached the overbought zone and confirms the price reversal? What about a bearish signal from MACD histogram? What about a possible bearish signal from MACD?
How can we ignore these solid bearish signals?
Also, let's make it clear, why 14 000$ is so important for the market. Just look at the left side of the chart. You can see how 14 000$ resistance stopped and reversed a strong upward movement had started from 3000$ support! Why do you expect that this time the price breaks it and move up?
I ask these questions as I see traders believing in the further upward movement!
I think we will be able to talk about the continuation of the uptrend if we get a consolidation below 14 000$.
Look at the price action below 10 000$. This level also was important for the market. The price reached it and couldn't break it after several attempts. We got a consolidation in the borders of the triangle. When the price broke the upper line of the triangle, it gave us a solid bullish signal. The price moved upward, broke 10 000$ resistance, and reached 12 500$. After retesting 10 000$ as new support, we saw a new upward movement toward 14 000$. The same pattern will be workable at 14 000$ as well. But now we should expect a pullback toward 12 500 - 12 000$ support zone.
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.
Anmerkung
I fixed the main part of the profit at 14 000$ and now I'm ignoring this breakout. The price broke the strong resistance zone and reached 15 000$ round number. If we talk about a false breakout, now it is possible only in the weekly timeframe. We have to wait for the close price of the weekly candle.
How to trade? Of course, it was not a good idea to open long positions following the breakout. But if the market is really strong, it makes sense to wait for a pullback and buy using reversal signals.
The previous zone for buying was between 12 500 - 12 000$. Now the strong resistance should become new support. If the price bounces from 14 000$ support, it will be possible to think about buying.
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