Help Analyzing Chart

Hey guys, I’m currently waiting for bitcoin to re-test a new support zone but I’m facing a problem…

This is how the chart is looking. The price crossed the past resistance line that right now (I suppose) will work as a support line. After, the price would re-test the new support line and eventually reverse the trend (we were in a downtrend and now, we will go for an uptrend). My question while I was preparing for this trade (a question that I didn’t know I had problems with) was when should I go in… Basically, I now that the best practice and, as the name says (re-test - the new support zone), I should wait for the price to go all the way to the new support line but, I have seen some cases, where the price doesn’t go exactly all the way down to the new support line.

Let me know what do you guys think and what do you usually do in these cases.

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The scenario is a common conundrum for traders across various markets, not just in crypto.Here are a few factors to consider:

  1. Market Momentum: Check if there’s strong momentum that might prevent price from reaching the exact support line. Use indicators like RSI or MACD for this.
  2. Price Action: Look for bullish candlestick patterns that could indicate an early trend reversal.
  3. Use Fibonacci: Use Fibonacci retracement levels (like 50% or 61.8%) to estimate potential support levels.
  4. Confirm Before Entry: Wait for confirmation of trend reversal (e.g., bullish candlestick pattern) before entering.
  5. Scale In: Consider entering the trade gradually, adding more if price tests the support.

It really depends on what millions of traders would pay for an item that has no instrinsic value. It’s following the lemmings time.Enjoy The Ride (ETR)

brilliant user @Phonix should help you

Might have touched a nerve there.

Actually I rarely bother trying to draw s/r lines but when I have they are only inclined at an angle if defining a trend: to do that I always look for at least 3 touches. On top of that I also want price and the 20EMA to be on the right side of the 50EMA.

no nerve, just according to this :wink:

Hi dude, I am not talking based on technical analysis here, but fundamental. BTC is about to experience halving for another time. usually before that, BTC goes through a very big dump. so I will wait to see the price line at around maybe even 15j and then I will be waiting for a big jump.

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Damn, you trade without drawing the zones? That’s wild