It was another great week for Bitcoin, one of the best yet! While taking a closer look at the chart I spotted what may look like a potential bearish engulfing pattern!
Notice the total size of the red candle above including wick is a little larger!
A bearish engulfing is a candle pattern where the smaller green candle with smaller wick is eclipsed by a larger red candle with larger wicks!
It looks like this pattern is close enough to drop some anchors and analyze the market with a quick fibonacci retracement tool.
My goal is to familiarize myself with the higher probability buy price levels so that I will be ready if another correction hits! These areas consist of specific prices which we can build a profitable trading strategy around.
The specific price ranges I am looking at are between the two green lines on the chart above.
The high probability buy zone is to buy in the range between $4031-$3929! To manage risk you would try to buy at the lowest area in this range, and cut losses on this trade any lower than $3929! Wait for confirmation of a bounce from somewhere in this zone before buying!