Bitcoin Still Below 40,000 – What Next?


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Yesterday BTCUSD had quite the rally from a low of 37,450 and all the way up to the 40,000 level. Here is was rejected and is now trading around the 39,300 level.

I am personally looking for a possible short trade should we see it accepted into yesterday’s value area. Should we see this happen, I am looking for a potential drop back down to the 38,200 level, and here I would possibly look to enter a long trade.

Should we stay above yesterday’s value area high, I may look to enter a long trade on a break and retest of today’s open level around the 39,700 level.

If we get accepted into the value area, where I am looking to enter short, I will have a stop loss above the 39,700 level. Hence the entry needs to be close to the VAH around the 39,300 level.

If Bitcoin does drop all the way down to the 38,200 level, I will look for a long trade, and the stop will be tight. If we do see bitcoin continue to drop from this level, I do not want to be a long trade for now, anyway. I think a solid spot would be the 37,800 level.

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