Bitcoin 2 Scenarios For The Low Volume Environment
The first scenario
The current sell signal fakes out around the 47K area minor support, and is followed by a bullish reversal. This can be a pin bar or inside bar. Once the high of that candle is taken out, a new buy signal goes into effect.
This will be considered an aggressive long since it would be into a major resistance level. Risk would be measured from the 47K support and what needs to happen next is a very strong and decisive move above 50K. IF a bearish reversal develops just after price breaks out, you must be quick to adjust you risk or take a small loss/gain etc. Another fake out off of a 50K break attempt could lead to too many longs exiting and a test of 44K.
The second scenario
The 47K minor support breaks and price pulls back into the 44K area support. A bullish reversal in this area offers much better reward/risk while staying within the boundaries of the broader bullish structure. It is a higher probability trade and I would rather wait to see if Bitcoin can provide that opportunity.
I am evaluating this from the swing trade perspective. If you aren’t sure what that is, or just chasing profits because you are afraid of missing out, you really should not put any money to work at all. Emotionally driven investing is the same as gambling and you wiill always be at the mercy of the market.