Let’s continue our trading journey. Yesterday we had the successful short trade on Bitcoin, but tonight it gave us the early reversal signal, that’s why I decided to close the trade in solid profit and wait what the market will give us.
Let’s take a look at the 1h time frame BTCUSDT chart. We can see the bullish reversal bar at the very bottom. This is the simply the bullish hammer with the large angle with the Williams Alligator red line. This was the first valid signal that the downtrend is weakening right now. Moreover the BTC has already created the first fractal above the red line. If it will be able to overcome this level at $22998 we can use the long trade setup pointed out on the chart. In case of losing support at $22738 we can open the new short trade because the potential trend reversal is not valid anymore. Anyway we should not try to predict the future, just trade the current market situation.
Best regards, Ivan