Bitcoin Technical Analysis Weekly Update on 2/21/2019

Bitcoin‘s price has seemed to stabilize between $3,200 and $4,000. Since Bitcoin’s price has started making waves there seems to be indications that it could make a run up.

A run up in bitcoin’s price is showing it could be correct for a certain number of setups on the long side. But there are some short setups that I will go over in this post. For full transparency I am long on Bitcoin and own some. I’ve been purchasing some as it has been waffling between $3,000 – $4,000

Bitcoin Price and Trade Setups

From the chart above we are looking at the dark blue circles where I have the Fibonacci levels drawn from. This is a lightning trade setup to the long side.

The current exit is the pink line around 4,140. Once price hits 4,140 then that specific long setup is over with. If price goes down and hits the bottom green line at 3,121 before hitting 4,140 then the exit would move to just below the 50% Fibonacci retracement level around 3,620.

With this current setup I would not be going long at this point. If price dropped under the 3,620 level then I might consider it. But only if it did so before hitting 4,140.

Short Setup

With the chart above it is a short setup using my lightning trade. The current exit is the pink line around 3,414. So if you are looking to short Bitcoin then this could be a good area.

Also, if price goes up and hits the green line at 4,098 then the exit would move to just above the 50% Fibonacci retracement area at 3,760. But if price never goes up and hits 4,098 then the exit remains at 3,414.

Where price currently is (3,890) this is what I call a “free trade.” Your final exit would be 3,760 so if you get in here your final exit would always be a positive return. But the exit would only move from 3,414 to 3,760 if price goes up and hits the green line at 4,098.

Bitcoin Price Short Setup 2

With the short setup above there is a lot more room to run if you want to short Bitcoin. Price has gone well above and is going to the Fibonacci extension levels the other way which I have put on the chart.

You can see how price has paused around the 200% Fibonacci extension level. Could this be the beginning of the retracement? I am not sure. But if you are wanting to short Bitcoin then this is an excellent trade.

The final exit would be the pink line around 3,483. The final exit would not move, even if Bitcoin continues to move higher. The setup used is my lightning trade setup.

Recap

Today I went over a long setup and two short setups. Personally for myself I am long Bitcoin and will keep adding to my position if price moves back to the lower $3000 level. But if you are more of a swing trader then these setups would work very well since I am using the 1 hour chart in these explanations.

The information provided is my own opinion and should not be taken as financial advice.

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