Good evening all…
So below you will find a weekly outlook for Bitcoin. I will try and keep it digestible with key points you need to consider if you decide to exploit any opportunities.
Reviewing last night’s update:
So Bitcoin has shown a retrace back into the Tolerance zone which we spoke about last night.
Look below and you see what we call vector cluster zones, where the price is forced back up to shake out the retail traders running shorts.
The first image is “BTC 1 HOUR TIME FRAME CLOUD”
Notice that we are currently at the cloud…
Two scenarios…
Bitcoin is within a zone to reject the blue 50 ema line…
We have recovered the red vector to the left.
So my first assumption is will Bitcoin look to attack the vectors below once we start forming the psy ranges…?
See the psychology, bitcoin appears to be reversing….Thats what people are thinking right now, so they have a bias to higher prices…
“BTC WEEKLY STRUCTURE”
In this chart, we are presented with a short-term move that may be on the cards.
Consider the following zones…
The weekly Vwap – The week is coming to an end and we are anticipating that at some point price could end up towards the vwap…
But what does it need to break through before it gets there, especially before the start of a new weekly vwap commences?
This exercise prepares you to anticipate zones that you may expect a reaction towards or away from.
What we have to consider is the following…
The bigger time frame suggests that a retrace is on the cards…Do we trade it?
Do we wait till the psy ranges form?
As we are currently working the 1-hour cloud, we are waiting for Bitcoin to get above and close within the upper band of the cloud to suggest higher prices from this price point.
Make sure that you wait till you see price get above the 1 hour cloud for any short term moves to the upside…
If we cannot break higher then price will deviate away again to find another zone to accumulate and start to retrace again back up.
If we break the 27130 zone then we will anticipate the 200 ema on the 8 hour time frame…So just be aware of this zone.
Remember the psy ranges will give us the heads up on what the MM could be preparing for…Any fast aggressive moves above or below the Psy ranges, wait till they have tested the psy ranges before you commit to a direction that suggests:e.g. if they break the psy high and trade away from it, we assume that they will trade away from that zone throughout the week.
I hope this post is short and sweet and helps you define possible scenarios.
I will be updating you all with the FX and Indices tomorrow evening.
