Is Bitcoin Setting a Bull Trap or About to Push Higher?

The price action on bitcoin has been interesting of late.  Just when we got a nasty reversal candle on the weekly chart after the parabolic move higher price came down to the first support level and rallied hard.

Where do we go?

That is the 20,000 dollar question.

If you look at the weekly chart above you will see what I mentioned in the opening sentence of the post.  Talk about mixed signals!  I had 9800 as a target and the first support, the reversal pattern (on daily chart) coupled with some follow through is making that nasty candle from last week obsolete.

So the question is.  Is this real or is it a bull trap.  It has been quite some time since I was this conflicted about the price action.

As you can see the daily chart is looking positive at the moment. It surpassed the 11,600 level and has since tested it intraday and bounced off it higher.

In the end btc really needs to crack 12,300 to have not created a lower higher after making a lower low.

That level could act as resistance, especially after running up from 9800.  At this point I’m just holding my long-term bag as I missed the trade entry at both 9800 and 10,800.

Trading Around a Position

This is why I personally like to hold a core position and then trade around it so that I don’t have to be stressed about getting in or out when the picture isn’t completely clear.

 

 

About the author: TIMM Trader
Uniting Experts & Novices for Mutual Profit!

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