Along with that, a newly developed upper low formation is set up around the 21,8 area and then an inside bar. Although 24K is upside, the price still stays in the area after the introduction of these bullish formations. These are signs of strength, and create a stronger argument for the trend to continue. Higher lows often lead to higher lows.
So what can go wrong? Good thing you asked. One bearish scenario would be the high failure to break out or the failure of a high formation that could develop on trial of the low 24Ks. If this happens, the sales pressure of all new ships can lead to a much wider rollback that can result in a test of the area of 21,200 or even as low as 18,500. It may sound extreme, but if a larger Wave 4 develops here, Bitcoin can get stuck in a large consolidation for a couple of weeks or months.
We recently sent out a new swing trade idea in anticipation of the 24K breaking out. Our risk is defined by a break of 22K. If we see a clear sales signal sooner, we will also be prompted to leave and wait for a better setup.
Want to learn more about how our swing trade strategy works? We had a trade of 18,680 sent out on December 9th and reached our third profit target of 23,680 within a week for an average profit of 2K. Sure they don’t all work out this way, but when they do it’s nice.
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I hope you found my analysis useful, thank you for looking at it.