BTC UPDATE: Finally some movement. Looks like the the bears rejected the minorresistance area that I wrote about in my previous report. Even though it may look concerning, this move is welcome because it brings the opportunity of a swing trade long idea that much closer.
The 7330 to 7212 support zone is relative to the .618 area of the recent bullish structure. There was also a minor reversal zone boundary in the 7400's that got blown right through. The point of knowing these levels is not to expect price to simply reach one and turn, rather it is to be prepared in case a reversal sign appears.
I always tell my readers, one of the steps in the trade process that we employ at S.C. is evaluating predetermined levels. This is dramatically different from "predicting" moves which so many are still bent on doing. We don't predict, we measure probability.
In my report yesterday on S.C., I wrote that even though price action had established some bullishstructure, the problem was it was climbing right into a resistance zone .
I even wrote that it could have broken above, but the probability favored bears. The main reason is the 8100 area resistance which is the .382 of the recent bearish structure. And here we are, 300 points lower.
Again I did not know this was going to happen, but I did know to avoid any longs in that resistance area. Best practices dictate to buy supports, not resistances.
Speaking of supports, now price is finally revisiting some interesting levels. The key is to WAIT for a reversal pattern to materialize for a swing trade.
Even though potential still favors the bear side on the short term, a bounce off current levels can reasonably take price back up into the 7500s or higher. Certainly worth risking 150 points for.
Besides that, another bounce off this general area will only add more emphasis to the 6K area broad higher low formation.
Overall, be patient and if you are really feeling aggressive, the 7200 to 6904 area is a great place to accumulate inventory. Keep an eye out on S.C. because this is where we will share any portfolio ideas. Otherwise, on the short term, now is the time to start paying attention to levels like the mid to low 7200s, 7K and 6904 for reversals. If the market can meet our criteria, a swing trade long idea will be in order.
We don't know if the market will reverse, but we will be prepared if the opportunity presents itself. All the information we need is in the price action.
I have just copied this data from a technical analyst.