Bitcoin: Back To 56K Support.

11. Aug.Bitcoin has rejected the 53 to 56K support zone as I wrote and spoke about in my previous
week’s analysis. My followers were not surprised and some even recognized the brief
investment opportunity that I emphasized heavily during my stream. If you are caught on the
wrong side of this move, most likely it is a result of consuming low quality information (too
much internet). In this analysis I am going to point out what this week’s
anticipated scenario can look like based on what PRICE STRUCTURE SAYS, nothing else.

Do not be confused by news and drama, it only looks to appeal to you on an emotional level. Professionals are able to capitalize on this, so it is YOUR job to make every effort to be as
objective as possible. This can be achieved by consuming information that offers perspective
and insight that is typically missing from typical sources such as news. Trend and support/resistance is such information and it is what I use primarily to arrive at a scenario that is favored each week.

Bitcoin has rejected the 53 to 56K reversal zone (expected) in a dramatic way and has gone straight into the 60 to 62K area resistance. Since testing this area, a bearish inside bar (See arrow) has printed along with a break below the low. This is a sell signal within a price area where such a signal is of higher probability. With this in place, I anticipate a test of the 56K support over the coming week. IF price is going to reversal higher and test the range highs, the 56K level would ne an ideal location for such a move to originate from. Why? The location has a history of buying activity. There is NO guarantee of course, it is only an
anticipated probability.

For swing traders this means measuring the risk against a potential retrace to 56K. Confirmation is KEY in these situations and working on slightly smaller time frames helps to reduce risk effectively when you can clearly define the risk and profit objective (this is where Trade Scanner Pro shines). I must always remind followers this is NOT a game of forecasting the future, it is game of estimating probabilities and controlling risk because there is a always a good chance the market WILL NOT COOPERATE With your anticipated outcome.

Another important point that I make often is that when evaluating a market, both sides must be considered. In the case of Bitcoin, It is also possible to get a bullish continuation pattern that can take price back into the mid 60Ks. While this is NOT the favored scenario, it is important to recognize so that if you are short, you are better able to recognize and adjust to being wrong. IF there is ANY skill to this game, ADJUSTING to changes in the market
decisively (knowing when you are wrong) is IT.

So for this week, the retrace to 56K area is the favored scenario unless the market changes it mind. Be prepared for bullish reversals in that price area. Knowing your time frame, and what risk/reward parameters are associated with that time frame is essential to effectively navigating this broad range bound market situation (50K to 73K). Those with opinions,
and those who get swept up into the internet nonsense and OVER complicate things will only
find themselves more confused. I say it over and over: the ONLY two components you need to make effective decisions are trend and support/resistance levels. Less is MORE.

Thank you for considering my analysis and perspective.