Stanislav Bernuhov
Common Sense Trading
Many crypto traders (and not only crypto traders) are concerned about the recent free fall of Bitcoin (BTCUSD). When we see the situation like this, we ask whether it is a good investment (trading) opportunity or, conversely, a good opportunity to go short.
In a previous article, I had written that I expect BTCUSD to achieve a $3000-$4000 target area. It had happened several days ago. What’s next?
Weekly perspective
Let’s turn to the weekly chart of BTCUSD.
We would be surprised but we can apply very simple technical patterns when it comes to analyzing BTCUSD (it is not a very tricky market). For example, we can build a symmetrical measured move (“AB = CD”). When you try to project a target area, it makes sense to take the height of a previous consolidation and project it to the downside.
That’s the way we get the approximate target. Sounds simple, huh? But that’s the way it works.
To buy or not to buy?
All of the said above doesn’t mean that you have to immediately jump into the trade.
When the price reaches the target, it doesn’t automatically open the opportunity to reverse your trade. More than likely price action just stops and starts rotating back and forth.
If let’s say, you are a long-term crypto investor, I would treat the current price of BTC as a good bargain. But from a trader’s standpoint, the opportunity may not be defined yet. If the price of BTC sharply soars, I would consider selling around $5000-5500 area (see my previous article).
That’s all for today. Have a good trading day ahead and a good weekend. Good luck!
Trading the financial markets is associated with increased level of risk. Past performance is not indicative of future results. All materials are provided for educational purposes only and by no means may serve as a trading or investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?