$BTC
Bitcoin: 64K To 66K Retrace.
Bitcoin recently hit the $70K resistance area and then pulled back. My Trade Scanner Pro indicated a take profit price of $72,632, which was nearly reached (entry was $62,907 on May 2). As I've always emphasized, understanding context—specifically trend and support/resistance—is crucial for navigating this market.
Here's my outlook for the coming week: There was a new buy signal at $69K, but the $70K resistance remains strong. If the current candle closes weak and the next candle drops, we might see a test of $66K to $64K.
This analysis is for day traders and swing traders. For long-term investors, there are many 'experts' with different views. Remember, the broader the time horizon, the more random the outcomes.
Focus on trend and support/resistance. Trends indicate probability and help interpret support/resistance levels, providing a reference point for expectations. Bitcoin's broader trend is bullish, but the short-term trend has been range-bound for three months.
Support/resistance levels are key inflection points. Knowing the trend helps anticipate which levels may hold or break. If the market unexpectedly breaks a level, adjust your strategy accordingly.
In summary, context helps align expectations with market data. As new information emerges, be ready to adjust. This approach is rooted in the Efficient Markets Hypothesis. Evaluate both sides of the market, assign probabilities, and gauge risk and profit potential effectively.
Thank you for considering my analysis.