Will bitcoin break 10k?
Despite my bearish take on the markets in my last post, I have now entered a long position based on recent action on the 4HR time frame. In trading, it's important to not get emotionally attached to a position but instead to stay objective and respond to market conditions as they materialize.
The bulls
- We are seeing a lot of pressure being put on the bears at the 9950-10,000 region, having touched that level multiple times, wearing the bears out a little more every time.
- The previous 4HR candle showed decent bullish volume, giving more credence to this move.
Support levels
The important supports are 9460 and 9250. A break of either of these levels will invalidate a 4HR uptrend.
My bitcoin long position setup
I've entered long positions between 9575 and 9800 with several stop losses set in the 9,460 region. I'm targeting 10,500, giving me about a 3:1 risk to reward. If you enter at current prices you will get an even better R:R as shown below.
What if I'm wrong?
I like to ask myself this question every time I enter a trade. I can see a scenario where I get stopped out at 9,460 but we still find support somewhere between 8250 and 9250, maintaining the shape of the ascending triangle. That would suck but the risk would outweigh the reward of this trade if I stopped out anywhere below 9400.
Of course there is always the possibility that we break even the 8250 level and then come down for a weekly time frame retracement.
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Alright guys, that's it from me. Let me know what your thoughts are. What did you like/dislike about this content? I'm continually seeking to hone my craft, all feedback is valued!
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