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Bitcoin Bottom Building

Summary:
Defending 3,800 and a Swing Trade Play For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges. This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the bulls defended 3,800 USD : BTCUSDT 60 minute chart as of March 4th, 2019 If the closing price for BTCUSDT should be above and near 3,686 USD on March the 5th, a quick daily long play could provide a short term opportunity. Long entry opportunity on March 6th for daily swing trade long play: BTCUSDT daily chart as of

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Defending 3,800 and a Swing Trade Play

For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges.

This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the bulls defended 3,800 USD :

BTCUSDT 60 minute chart as of March 4th, 2019

If the closing price for BTCUSDT should be above and near 3,686 USD on March the 5th, a quick daily long play could provide a short term opportunity.

Long entry opportunity on March 6th for daily swing trade long play:

Bitcoin Bottom BuildingBTCUSDT daily chart as of March 4th, 2019

It is important to see clearly that the weekly chart, as the more dominant higher time frame, is favoring the short side. As such the suggested swing play setup should be managed with our quad exit strategy, tight stops and a conservative  target.

Larger time frames suggest this to be a counter directional play:

Bitcoin Bottom BuildingBTCUSDT weekly chart as of March 4th, 2019

This especially so since what has been support (3,800 USD) has now become resistance. The 4 hour market profile chart illustrates the overhead pressure.

BTCUSDT 4 hour chart as of March 4th, 2019

It is prudent to attempt low risk entry points in a bottom building phase of the market, even though they might not look as attractive at first. No one knows when the market might turn. Being positioned early doesn’t hurt, if the risk parameters are very conservative.

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Addendum by PT

Unfortunately we were a little slow in posting this update by Midas Touch Consulting, or let us rather say, the crypto market is sometimes too fast for us.  Here is what has happened since the above post was originally written:

BTC hourly – it was indeed a great low-risk entry point for a short term swing trade.

Given this good result, we thought it may still be an interesting update to re-post, even if the opportunity is gone. Readers who are into short term trading of cryptos may want to check out Korbinian Koller’s short term updates more frequently (see links above).

Charts by: Midas Touch Consulting, Cryptowatch

Korbinian Koller

of Midas Touch Consulting has been coaching traders with heart & passion for more than 20 years, assessing complex situations, troubleshooting and solving problems. He has 25+ years of execution experience (50.000+ trades executed) trading multiple personal accounts (long and short-and combinations of the two).

 

 

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