[21-12-2023] $BTC LAST WAVE CORRECTION BEFORE BIG PUMP
Updated
We've observed a pivotal break through the established trendline.
The intersection at the Phi cycle's 45-degree angle marks a critical juncture for potential price action shifts.
Key Observations:
Trade Strategy:
Risk Management :
Given the current position within the cloud and the break of the trendline, traders should employ a dynamic stop-loss strategy, potentially just below the most recent swing low or the Fibonacci level that serves as the entry point. It's essential to adjust positions to align with the evolving market structure and personal risk tolerance levels.
Disclaimer:
This analysis does not constitute investment advice. It is provided for informational purposes only.
Traders should do their due diligence and manage risk according to their trading plan.
The intersection at the Phi cycle's 45-degree angle marks a critical juncture for potential price action shifts.
Key Observations:
- Trendline Break: The break above the trendline suggests a shift in market sentiment, potentially ushering in a new bullish phase. Traders should watch for confirmation in the form of continued upward momentum or a retest of the broken trendline which could now act as support.
- Phi Cycle: Currently at a 45-degree phase angle, the Phi cycle indicator signals a balance point that traders often watch for trend strength or weakness. It's a critical angle for observing price action, given its historical relevance in forecasting turning points.
- Fibonacci Retracement Levels: The attention now turns to the Fibonacci retracement levels, where a potential retest of the 23.6% or pump to 78.6% levels could provide trading opportunities. These levels are significant for determining potential support / resistance zones during retracements.
- Ichimoku Cloud: The price residing within the cloud still indicates uncertainty. A strong bullish signal would be a breakout above the cloud with high volume, whereas traders should remain cautious as a drop below could indicate a false break.
Trade Strategy:
- Bullish Retest: If the price retests and holds above the 23.6% Fibonacci level, it could offer a strategic long entry point, with the aim to capture the momentum towards the upper boundary of the cloud or the PRZ discussed earlier.
- Deeper Retracement Play: Should the price action seek deeper value and approaches the 78.6% retracement, traders might look for bullish reversal patterns before initiating long positions to ride a potential recovery.
Risk Management :
Given the current position within the cloud and the break of the trendline, traders should employ a dynamic stop-loss strategy, potentially just below the most recent swing low or the Fibonacci level that serves as the entry point. It's essential to adjust positions to align with the evolving market structure and personal risk tolerance levels.
Disclaimer:
This analysis does not constitute investment advice. It is provided for informational purposes only.
Traders should do their due diligence and manage risk according to their trading plan.
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