BTC Ranging and Planning Trades
BTC/USDT, 1h
Neutral
BTC looks to have printed a possible swing failure to the range I was watching overnight. This could likely be a rapid liquidity grab and is quite bearish if BTC fails to move higher. If this is a swing failure pattern, I would suspect that we see the faster move lower come in when the US market opens (less than 1 hour from writing this).
If the sell pressure comes in, then opening short positions will do quite well as it will be likely that BTC contineus to drop and fall through the bottom of the range.
BTC 15min update. If this candle closes under this small market structure, it will give good indications of weakness to enter short positions.
We are back to the time where I like to set up for some trades. Some of my favorite trading comes when BTC defines a stable range like it has, this involves being patient to allow BTC to sweep high and low liquidity of the range. But once that range forms and has time to develop, the likelihood of the next move out of the range being a confirmed breakout increases. And we are now at that point where I am reasonably confident that when BTC moves out of this range, it will likely be the confirmed breakout and not a swing failure.
So what I am doing at this time is preparing for the altcoin trades that I want to take. I will only enter these when BTC breaks out of the range because I prefer not to get caught up in the noise of trading within the range. So the key here is to time the altcoin entries well so that the altcoin is breaking out of its respective pattern at the same time that BTC is breaking out of its range.
This is not a complete list, but here are a few ranging altcoins that I am watching:
ETH : Similar range that BTC is printing, entering on a breakout only if the breakout is timed with a breakout on BTC
BAT : Similar range that BTC is printing, entering on a breakout only if the breakout is timed with a breakout on BTC
PEOPLE : Similar range that BTC is printing, entering on a breakout only if the breakout is timed with a breakout on BTC
AVAX : Similar range that BTC is printing, entering on a breakout only if the breakout is timed with a breakout on BTC
Note that the position markers on the charts are simply a guide and the take profit and stop loss levels should be adjusted for each trader’s strategy and risk tolerance.