Bitcoin - Who Was Right and Who Is Wrong

The market did not follow the H&S chart pattern from the previous post. For some people who know nothing about real trading in the financial markets and who think that for making money a trader must be right in his trading ideas all the time, I would like to say the following: learn the theory, get knowledge and experience and in some time you will understand how you were wrong and where.

The price broke the right shoulder and the reversal chart pattern became a continuation one. The market keeps some potential for moving upward and probably it will be able to reach 6000.00 level without deep correction, but still, we have different bearish signal too. The weekly and the daily charts tell us about the possible downward movement which is logical in the structure of the uptrend. Yes, the market can move upward. But for me, the main questions is - the market bounces from the zones at 5000.00 or 6000.00 levels in order to move down to the important support zones. Nothing more.

If we look at the 1H chart, the market continues upward movement in the borders of the upward channel. Now the price is at the resistance zone formed by the upper line of the channel and 5300.00 resistance level. It's the zone where the price can bounce and move downward to the main line of the price channel. At the same time we have to remember that if the price breaks the resistance zone, the market will confirm the further upward movement. It will show the strength of buyers and their wish to reach 6000.00 resistance as soon as possible.

For confirmation of the downward movement, the price will have to break the main line of the price channel and drop below 5000.00 support level. In such case, the market will be able to follow the bearish signals from the higher timeframes.

How to trade:
- short term trading can be done based on the reversal signals from the support zone at 5000.00 level and the main line of the price channel
- for the medium term trading, I would like to get a correction to 4200.00 - 4000.00 support zone
- for long term trading, it's possible to start building long positions from the current levels.

If you want to see the bigger picture for this market, I advise you to read my previous posts about Bitcoin. You can find them in the related ideas.