The support at 30 000$ played its role perfectly. We could see several failed attempts to break the support and move downward toward 20 000$, but bears were not strong enough to do it. The price bounces from 30 000$, gave us several interesting patterns in the hourly timeframes and moved upward. What’s next?
First of all, we have to note the following important facts:
– the price bounced from the formed by 30 000$ and SMA50
– confirmed the price reversal, and it is a signal
– histogram confirmed the price reversal, and it is a signal
– the price broke the local downtrend line, and it is a solid signal
– histogram is supporting a further upward movement
– a solid candle breaking SMA20 tells us that bulls are in control of the price.
All these signals confirm that the price will be able to reach the ATH and even update it. If so, we can search for setups using the hourly and minutes timeframes as they will be able to give good risk-reward for long trades.
If the price breaks the ATH , I think 50 000$ will become the perfect target for the medium term.
The alternative is:
– the price doesn’t reach 42 000$, and we have a reversal
– the price moves back to 30 000$
– the price breaks 30 000$ support and SMA50
I don’t think we will see something like that, but we shouldn’t forget that the market can do everything.
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.