BTCUSD: Top-Down AnalysisHey trader,
Bitcoin has been behaving dramatically lately. It dropped from around $21,500 to $15,588.20 this week. Can't imagine how other investors are feeling right now...
For active traders, it's a different story. Because we can exploit long-term and short-term biases, like how we can now. As you can see on the chart above the price is slowly forming a bullish reversal pattern that will lead to a 3-level uptrend, after its price has bullishly broken and retested the 3rd Weekly Key Lvl together with the 50 and 8 MAs. However, it may reject that bias by bearish breaking and closing below the 4H Half a Bat Neckline.
This trade idea isn't derived from only this timeframe but from the 4-hour and daily timeframes. Let us move upwards to the 4-hour timeframe:
As you can see the price recently closed with a bullish reversal candle pattern in the half a bat patterns accumulation phase and in between the short-term MA's. This pattern expects an uptrend to its L1 and 50 MA as the first targets, which will be anticipated after the price has bearishly retested the 8 MA with a bullish candle formation. But if the price decides to bearish break and closes below the 8 MA and 4H Half a Bat Neckline, our bias will be rejected.
Now we move up to the daily, which is the main timeframe that led to this trade idea:
The price closed with a bullish reversal candle pattern in the half a bats accumulation phase, after bearish breaking without retesting the pattern's neckline, together with the 50 and short-term MA's. So having the price closed as it did, gives us a probability of the uptrend we're looking to hop on. But this will be rejected by a bearish reversal candle close below the 3rd Weekly Key Lvl.
With that said, take your trade at your own risk. This is not financial advice. I'm just sharing my point of view with you guys (which you can also do).
That's it for today. If you have a different concept in mind, feel free to share it in the comments section below, I'd love to know your thoughts!
Trade Safe & Stay Blessed,
Sphatrades.
