On the time frame that we utilize for our long only swing trade strategy, Bitcoin is nearing the 50K major support area. I have been talking about a potential retrace to this important price location for weeks. A retrace to this area is nothing more than a healthy pullback within a broader BULLISH trend.
In these situations, probability favors buying, not selling. The key is to wait for the proper setup and confirmation because the level alone is not enough. One potential setup I would like to see develop is a bullish pin bar. If it appears and confirms, I would be prompted to share a new swing trade long idea.
IF price decisively breaks the 50K support, then bearish momentum is likely to lead to a test of the 45 – 46K area support. In this scenario, the BROADER trend is still bullish and I would still be looking for a buy signal.
IF 40K is cleared, that is when we have to reevaluate the broader trend.
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