I executed long trade at $42320 with the stop loss $40565. To be honest I don’t like this trade because it is not my trading strategy. It is the very local trade.
Why we can buy Bitcoin now? If this is uptrend with the potential growth to the $47k-$49k this local correction have to be ended at 0.38 or 0.5 Fib level. Moreover here is the local 1h demand zone, which allows us to set the proper stop-loss just under it. The potential take profit level is $47000. After that I expect the downtrend continuation. Why? I can see the clear market makers selling pressure at $45000. Look at these volume spikes at the peaks, but there are more than 50% of long positions on Binance futures. These positions should be liquidated before the new drop. The new higher high is the nice opportunity to do it. Moreover here is could potentially be my favorite reversal pattern – true bearish divergence with MACD + fake breakout, but we need time to see it.