Lets take a quick look at what the Big Bad Bitcoin market has been up too since my last report. The market failed to defend the $7000 zone and we quickly entered back into the 6k zone. Most traders were caught unaware by this move, however we were ready and our Premium subscribers had the call to go short should $7k fail. Lets take a look at the charts today.
The market has started to form a higher low yesterday on the 4hour candle chart, MA’s have given the buy signal, however we can see that the momentum is clearly turned against the bulls for now. I would expect some more correction here on the very near term, I have support levels around $6200 – $6350 for the shorter term plays.
Resistance is currently very solid above $6400 and the bulls will have to keep buying up the sell walls to get us above this zone, should they get shy we will surely test the lower support zone sooner than later. The Bitcoin market has seen good volume over the weekend and the start of this week, indicating that there is indeed a lot of open interest in the markets around these prices.
To play this market safely, be patient and wait for consolidation above $6400 (assuming you are not long from lower prices), should the momentum favor the bulls as well, it could be a safe trade for some gains as volatility is quite high right now and we have experienced good movement in both directions the past couple of months.
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