Bitcoin is approaching once again the arc which stopped the advance in the recent past. Here is an 8-hour chart of that chart:
This setup shows us that we are at a point in time and price that is a bit precarious. The market has turned at this arc pair twice already.
However, I see that at its peak, price not only punctured, but (briefly) closed above the arc pair. This suggests that the arc is vulnerable. Will it get through the arc pair in this test?
Let’s look at a shorter-term, 2-hour chart to see if there is a clue there:
As I have often reminded, we won’t get a buy signal on this chart until we get a close above the arc pair. One of the 2 enemies of traders everywhere, “greed”, will entice many to buy before the signal is given. Buying early will get you a better price. Sometimes it is a gamble that pays off. It might pay off this time. However, one must learn discipline to trade. And discipline says wait for the signal, even if it means buying $10-$20 higher. Anyways, I know that most traders already know this, but few have the strength to do the right thing every time.
Remember: The author is a trader who is subject to all manner of error in judgement. Do your own research, and be prepared to take full responsibility for your own trades.
Last modified: July 13, 2020 3:13 AM UTC