Bitcoin Zones to Trade

BTCUSD is currently trading at 29,133. It has been trading slightly below the range of 29,400 - 31,900 for the last couple of days, which is likely to give lots of traders a bearish stance. Time spent outside / below the mentioned range, is without a doubt not the most bullish sign. But there are some key aspects to keep in mind before just jumping in on a short trade from the current level. Lets dig deeper to see where the BTC price may be heading in the nearest future.

Range to Range

If you click on the image below, you will see that bitcoin has been trading in the larger upper ranger for a long period, with a couple of deviations outside the range.

It finally had an actual breakout where price managed to stay below the larger range for a sustained period of time. Yesterday, there was an attempt to move back into the larger range, but price did not manage to stay, and as a result, dropped back into the current range. In my opinion, this adds to a bearish stance, for now.

Zooming Out

The range view above is from an hourly perspective. Below you will see the daily chart, with a fixed volume profile pulled from before the beginning of the first major bull run.

Here you can see the value area low comes in at 28,600. You can also see we have been trading above this level for quite a while. On a daily timeframe, BTC is clearly bullish, making higher highs and higher lows. Trading above the value area low, opens the possibility for the POC to be the next major target, which comes in at 47,000. Note that price won't go there in a straight line. But This is, in my opinion, the next major target to keep an eye on, should Bitcoin continue its higher timeframe trend to the upside. The current market structure on a daily timeframe, combined with the fact that it's still trading above VAL, are bullish details to keep in mind.

Zooming In

If you click on the image below, you can see the places I am currently looking for possible trades. Specifically, I am looking at these three highlighted levels which is:

Long below 29,060

Long below 28,830

Short above 29,670

I will not preset any limit orders at these levels. I will wait and see how price reacts when coming into these zones. If price just continues to drop I will not execute any long trades, and if price continues to increase when coming into the 29,670 level, I will not take any short trade. I want to see price stall, and preferably move back down / above the highlighted levels, and then look for a favorable execution with a tight stop loss.

I would personally prefer to see the short trade first, followed by a move down to the mentioned zones for long trades. My bias, for now, is bullish, which is why the short trade will be more of an intraday trade, and the long trades are potential swing trades.

Stay tuned for more updates on this, and follow along on twitter / X for realtime updates.