FXEMPIRE
All
Ad
Advertisement
Advertisement
Marc Principato
Add to Bookmarks
Group of golden Bitcoin coins arranged in a grid

At this time, 50K is still the key support that is in play. That means it is still very possible for a retest of this area, followed by a bullish reversal. That is the scenario we are waiting for because it offers the best reward/risk along a greater population of participants looking to buy. How do we know? The initial test of the 50K area support didn’t even touch 50K, which can be interpreted as plentiful buying activity (see recent candle stick tail).

IF price manages to make the slight lower low, the mistake to avoid is to step into it too early. It can be very tempting, but waiting for confirmation (a bullish reversal pattern), helps to minimize getting caught in a support break or dramatic sell off. The trade off is you will not enter at the best possible price, but the good news is you don’t need to. Momentum on your side more than makes up for having the best price. Don’t seek perfection in an arena where it doesn’t exist.

Advertisement
Know where Bitcoin is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

So we WAIT. No predictions, no hunches, no opinions. Bitcoin either aligns with the strategy, or we don’t assume any risk. As many “gurus” will not tell you (because they are too busy putting out “action”), high quality opportunities and setups are infrequent and RARE. Over a one month period we have only been seeing maybe 2 or 3 at most in recent months on the swing trade time frame. That translates to maybe 1 per week. More trades than that? You are either over trading or day trading.

IF the 50K support breaks, it can lead to a test of the 48K to 45K area quickly. This scenario will also put a lot of pressure on many of the overly hyped alt coins as well. Keep in mind, risk should be your first priority, not profits. With this philosophy in mind, if 50K breaks, and you have a lot of exposure to alts, it may be a good idea to lighten up even if it means absorbing a smaller loss along the way. Going into “HOPE MODE” is not a strategy, nor is it healthy for your account over the long run. Hype and the herd mentality have been at euphoric levels recently, and when the space goes out of favor, many will be stuck in coins that are not worth anything even close to what they paid for them.

If you would like to know more about our long only swing trade strategy, please visit.

For a look at all of today’s economic events, check out our economic calendar.
Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker