Apologies for the lack of trading advice this weekend, we are hard at work setting up our Discord to be the ultimate. But enough boasting, let’s take a look at the markets.
We are taking a look at the day candles, to get an idea of the longer term picture for Bitcoin versus the US dollar.
On the chart we can see how the breakout above 15 500 played nicely, however we can also see the sellers stepped in above 17 k, and the selling pressure broke the short term support at 16 500.
A lot of longs were getting wrecked again, like the usual Bitcoin moves. We saw short term support kicking in around 15 k, however the MACD indicator is hinting that it will get tested pretty soon, and in my opinion we will probably test the 14 k zone should the bulls stay shy of the market, or jump onto the Ethereum train.
We can see the bottom trend line offering good buying zones for those looking to get in on the bounce. In this kind of situation, traders would stack their buy orders in the 14 k zone, and down into the 13k zone.
Please note, this is usually accompanied by adding a stop loss below the bottom trend line, because should the medium term trend break, prices will go back down to the 12 k or maybe even 10 k zone. So far the bounce has been paying nicely for some traders on the Bitcoin market and we can see that the medium term trend is still bullish, and we are still experiencing a correction in the market.