Bitcoin 40K Attractive Location For Bullish Reversal?

Currently, the price is testing 40K for a second time which qualifies as a potential double bottom structure. IF price can hold and establish a reversal candle off this support area, an aggressive swing trade long signal can come into effect.

Keep in mind, this signal would be “aggressive” because it is against the recent bearish structure (series of lower highs coming off of 52K). The bearish structure favors a break of the 40K support, BUT do not lose sight of the broader trend (like so many novices). IF 40K holds, it would be a broader higher low relative to the swing from 30K to 52K. Confirmation of this would be the minor resistance around 45 to 46K gets taken out.

The bearish argument goes along the lines of the corrective structure continuing lower and a decisive break of 40K will confirm this. The next support is 37K and after that 35K.

It is important to keep in mind, stepping in front of such levels with limit orders without an kind of confirmation is ineffective because the levels by themselves are highly random.

A more conservative choice would be to WAIT for price to compromise the bearish structure and then retrace to a minor support. For example, price would break 46K first, then look for the next higher low. This process can take a week or two and requires lots of patience.

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