Bitcoin Pull Back Targets
TLDR:
This Idea is for traders that are sidelined and looking to enter long or to those of you that would like to increase position size.
I am bullish on Bitcoin, but I feel compelled to say that IMO the uptrend is not confirmed until we breach the 28.5K level and test it as support.
Assuming that this Impulse up is finished, I charted some Fib levels that could serve as pullback targets.
General:
IMO, a shallow pullback is the best sign for bullish continuation because it is a sign of trader’s confidence. I will hesitate to increase my position size if we will get back below the trendline into the triangle.
Pullback Targets:
0.236: The 0.236 fib level has the confluence of the trendline. It is the most bullish scenario; a quick test of the trendline and off to the races. However, if you intend to place a limit order, your SL should be wide, at least IMO.
0.382: In a way, this the best scenario because it will allow the RSI to reset lower, and this level is just above a demand zone. The drawback of this level is that it means going back below resistance. I think that trader sentiment is very brittle ATM. So, it is best not to give the bears a foothold.
0.5: Relatively deep pullback but still possibly bullish. This fib has the confluence of the demand zone and the upward sloping trendline.
0.618: Relatively deep pullback. If we get that low, it will open a new can of worms, but the uptrend will still be recoverable. Low confidence.
As a sidenote, if we examine the impulse of March 11th -17th. It was a relentless uptrend with no stops to onboard sidelined traders. The first impulse coming off of the bear market was the same. If this kind of PA repeats maybe you should consider looking for altcoin trades. Check my Ideas about FET, AGIX, SOL and FTM.
NFA.
What do you think? Please share in the comments.
Best wishes to all.
This Idea is for traders that are sidelined and looking to enter long or to those of you that would like to increase position size.
I am bullish on Bitcoin, but I feel compelled to say that IMO the uptrend is not confirmed until we breach the 28.5K level and test it as support.
Assuming that this Impulse up is finished, I charted some Fib levels that could serve as pullback targets.
General:
IMO, a shallow pullback is the best sign for bullish continuation because it is a sign of trader’s confidence. I will hesitate to increase my position size if we will get back below the trendline into the triangle.
Pullback Targets:
0.236: The 0.236 fib level has the confluence of the trendline. It is the most bullish scenario; a quick test of the trendline and off to the races. However, if you intend to place a limit order, your SL should be wide, at least IMO.
0.382: In a way, this the best scenario because it will allow the RSI to reset lower, and this level is just above a demand zone. The drawback of this level is that it means going back below resistance. I think that trader sentiment is very brittle ATM. So, it is best not to give the bears a foothold.
0.5: Relatively deep pullback but still possibly bullish. This fib has the confluence of the demand zone and the upward sloping trendline.
0.618: Relatively deep pullback. If we get that low, it will open a new can of worms, but the uptrend will still be recoverable. Low confidence.
As a sidenote, if we examine the impulse of March 11th -17th. It was a relentless uptrend with no stops to onboard sidelined traders. The first impulse coming off of the bear market was the same. If this kind of PA repeats maybe you should consider looking for altcoin trades. Check my Ideas about FET, AGIX, SOL and FTM.
NFA.
What do you think? Please share in the comments.
Best wishes to all.
