The larger time frame (weekly chart) is bullish for Bitcoin (BTC-USD). After a multi-week consolidation, an apex point is going to be reached soon. At that point, a directional outcome (new trend) is very likely. The odds are in favor for a directional breakout to the upside.
Never rarely sometimes always
That is the typical cycle of breaking your own discipline in trading rules. First you swear to yourself you would never run a stop. Then it starts out you rarely do it anyway and are very upset about it. Soon rarely becomes sometimes. And when sometimes turns into always you are devastated on the ground not knowing how you ended up here with all these good intentions. This can go on with all sorts of trading rules broken for years. Many traders feel they are insane and desperation of the higher degree sets in. Not only a lot of money is lost, but self-confidence and self-worth are at such low grounds that it can affect all aspects of a trader’s life. Most never recover from the deep holes they dug for themselves. Never rarely sometimes always.
This week’s Bitcoin analysis, Bitcoin daily chart, Support Below:
BTC-USDT, daily chart as of July 6, 2020
If you observe on the daily chart above how recent price action on Bitcoin has rejected the US$9,000 price level, you might feel comfortable to set stop levels there. With a possibility of prices rising and possibly penetrating the red directional resistance line, risk-reward ratios are in your favor.
BTC-USDT, Weekly Chart, Never rarely sometimes always:
The weekly larger time frame chart of Bitcoin supports this bullish view. After a multi-week indecisive trading time, an apex point is going to be reached soon. At that point, a directional outcome is very likely. The odds are in favor for a directional breakout to the upside.
Additional Opportunities: DASH Daily Chart, Low Risk – Juicy Returns:
With the general market picture in favor, taking a shot on DASH-USD has a good likelihood for success. The daily chart above presents a good opportunity due to recent support establishment. With stops being tight, a run towards the mean initially (yellow dotted line) and further advancements eventually make for a long trade setup.
DASH Weekly Chart, Never rarely sometimes always:
Zooming out to the higher weekly time frame shows support of a possible decision to go long DASH. The US$65 region is overall one where DASH has found support in the past.
Never rarely sometimes always
Without a particular strong willingness of self-abuse, there is no way to progress becoming a consistent trader with outstanding results. Most often cycles overlay cycles. Like the next round would be promising yourself once moving from paper trading to real money exposure, you will not violate your rules. But still, you can’t keep your own promises. The next “white lie” to yourself will occur once you are trading true large size in the market. You promise yourself to never deviate from your system. Unfortunately, it is exactly the opposite. The bigger the stress the more you will rely on intuitive behavior in a counter-intuitive environment. The results are devastating.
One of the problems is, these aspects of this profession are rarely talked about in educational materials. Consequently, these obstacles are harder to overcome by the individual trader who thinks this is just his or her personal fault and shortcoming. Little is talked about this being a natural step in a trader’s career. Almost all traders go through such phases before breaking through the crust. It is speculated that many who try to make their luck in this career give up just shortly before success would set in due to the lack of a few informational pieces alongside their struggles like the one mentioned.
Disclosure: I am/we are long BTC-USD, DASH-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.