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BTCUSD at bottom of channel. Time for another long! for BYBIT:BTCUSD by christophergeeltrader

BTC has collapsed through some vital support levels as we expected it to do (earlier than expected I must say).

It has been showing very weak price action over the last couple of days and a correction was due. When the price goes down, we look for longs and vice versa.

BTC is currently at the bottom of the channel but the momentum has been strong due to the downside momentum.

Although we currently find ourselves at a daily + golden pocket (highlighted in blue), I think we’ll have another small drop before we start making our way up to at least the middle of the channel again. At the very least, this will provide a bullish setup.

A couple of things I am waiting patiently for:

– Momentum to curl back up a bit with buyer interest.

Bullish divergence on the 30m – 2H TF on the RSI + CVD .

– Touch of the bottom of the channel.

Support for the long trade:

  • Daily level at 43.8k
  • VAL 43.6k
  • Golden pocket of the channel.
  • Bottom trend line of the channel.
  • 4H – 8H hidden bullish divergence (keeping in mind we need to remain above the last wick down)

Trade:
ENTRY: 43.8 – 44k
TAKE PROFIT: 1 – 46.7k (will look at taking profit (2) when we get there but presumably the top of the channel and top golden pocket around 49.5k)
INVALIDATION: 43k (We can also expect an SFP of the lower wick but I will analyze the price when we get to the bottom of the channel)

*NFA*

Let me know if you agree, disagree :)

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