Is Bitcoin Still A Good Buy Opportunity?
Looking at BTCUSD on the daily time frame, we can see a few things that have me concerned with a long opportunity but on the other hand I still would stay with the long bias for now. Let me explain why! The reason we first even discussed the long opportunity based on the rejection of the TK Zone prior to the indecision candle still remains in tact because we have not violated our entry purpose. The rejection candle has not been violated but the main thing that keeps me thinking long is that we have yet to see price close below Tenkan. Tenkan is our short term momentum indicator and then Kijun is our medium term and finally Kumo is our long term momentum indicator. If price stays above Tenkan then we have no reason to worry! In a strong trend price will remain above Tenkan throughout. At this point there is not a reason to enter long so I would not jump into a long opportunity at this time if I was not already long. We always want to get the trade at the level that gives us the least risk. If you can afford a long draw down then it really doesn’t matter about risk for you but most traders do not want to sit in a large draw down, nor can they afford it! What concerns me about the long opportunity is that price has not really moved much from our entry level the past few days. Also looking at the chart above we see bearish divergence! Price was moving higher and breaking bull fractals but the Ultimate Oscillator was moving downwards which indicates that the trend is weakening. Finally you can also see we are trading inside the box as price is boxed in and not moving outside of the bull candle for the past 8 days. Not a great sign for those that bought BTCUSD! I will keep my eye on this asset and update it when we see what price wants to do. Until then remember that trees that are slow to grow bare the best fruit. God bless!