BTC May 1, 2024: Lowest Since March, What Is Next?
On April 30, 2024,
BTCUSD
closed at the lowest level, below the $61,200 at the close of Feb 29.
More importantly, this was a strong support the
BTCUSD
has touched many times and bounced back (March 5, March 19 and multiple times between April 13 and April 19)
Therefore the close below this level has a significant implications for
BTCUSD
to go down further.
In fact, during the first half of April we have had 2-3 failed trades in the long direction. You can see the details in the related ideas section. What we did well is keeping those losses small.
Since April 13, when
BTCUSD
started to move down below the MA50, we also posted some trading ideas with buy stop orders above MA50, but they never triggered.
While long-term uptrend still look intact, we prefer to enter a long position only above the MA50.
Now what we can expect from here?
2 possible situations.
We are staying flat now and wait to a meaningful pattern to form before placing a new trade.
BTCUSD
closed at the lowest level, below the $61,200 at the close of Feb 29. More importantly, this was a strong support the
BTCUSD
has touched many times and bounced back (March 5, March 19 and multiple times between April 13 and April 19) Therefore the close below this level has a significant implications for
BTCUSD
to go down further. In fact, during the first half of April we have had 2-3 failed trades in the long direction. You can see the details in the related ideas section. What we did well is keeping those losses small.
Since April 13, when
BTCUSD
started to move down below the MA50, we also posted some trading ideas with buy stop orders above MA50, but they never triggered. While long-term uptrend still look intact, we prefer to enter a long position only above the MA50.
Now what we can expect from here?
2 possible situations.
- This is just a fake breakdown. In this case
BTCUSD
has to move back above $61,200 strongly.
- Further decline. In this case we can expect the next support level is around the previous base around $50,500 - $52,500
We are staying flat now and wait to a meaningful pattern to form before placing a new trade.
Comment:
At the close of May 3, BTCUSD moved back above the $61,200 resistance after jobs report. We are looking for a pattern to form around here on daily chart.
Comment:
Now a consolidation zone already formed between $62,800 and $64,500. A break out above this zone provides a new buy signal.
