There is a minor resistance level between 52500 and the 54K area. There has been some hesitation but nothing significant enough to make any adjustments. If price can clear this area over the next day or two, a test of 57K and a potential break out are within reason. This is especially so since a higher high is favored in such an environment.
What if the 54K area holds price back? We would then be looking at a lower high formation (sort of what the stock market looks like right now). This would be a bearish sign and if it is followed by a break of a candle low (either the 48K area or a low of a new candle that is not on the chart at the moment) that would be a new sell signal.
In the case of a sell signal, we might exit early which can result in a break even or small loss trade. Usually we are purposely slow to react because of the amount of noise in these situations.. Along with that, our risk is defined so even if we get caught in a broader pull back, we get stopped out for the amount we were comfortable risking from the onset of the trade.
If the lower high develops, it could be another hint toward Bitcoin being in a broader Wave 4 consolidation which we have been anticipating for some time. For our strategy, confirmation will not come until the 37K support is compromised. If Bitcoin confirms that scenario, we will adjust our expectations for our long and short term strategies. For example, our swing trade strategy would require more conservative profit target expectations.
A broad Wave 4 does not mean Bitcoin goes into a bear market, but it can be a tough market to trade, very similar to Gold which I keep referring to as an example. If you would like to learn more about how our strategies work, visit https://greenbridgeinvesting.com/pricing
This article was originally posted on FX Empire