Hey team,
With Elon finally letting slip that he's pumped $1.5 billion into Bitcoin, price obviously broke straight through daily resistance.
As our mate Elon would say, "in retrospect, it was inevitable" and now through we go back into the rarified air of new all times.
Take a look at the Bitcoin daily chart below:
BTC/USD Daily:
Looks like a clear, momentum boom that you had to time perfectly and get lucky to have bought early, right?
Wrong.
Take a look at the Bitcoin hourly price action below and you'll see that you didn't actually have to time the market or be early at all.
BTC/USD Hourly:
As per my simple support and resistance trading strategy, if you waited for price to break through the daily zone, then you'd only be looking for longs.
From there, you take the first area of short term resistance that when retested as support, could be used to buy off.
In this case, it's just the first red candle within the daily zone, that acted as resistance on the way up.
You can then see that price retested the short term resistance zone as support over the next couple of hours, before finally ripping higher.
See, you don't have to time the market or be early with your entries to make money.
Because they're areas of higher liquidity, markets usually trade around support/resistance zones in a highly structured manner.
Use this to your advantage when trading.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.