Bitcoin is in a critical price zone as this bull run has taken us from $15,500 to $52,800. Is this a situation where we short? Or do we prepare for a long?

How do we trade this? 

Shorting may be an option for a lower timeframe such as the 15m or 1HR. I would not be shorting on the Daily or Weekly candles, but waiting for the price to pull back to enter a long.

As outlined in my Bitcoin Lifetime Analysis, I believe Bitcoin is due for a major pullback ranging from 30-50% toward the $25,000-$30,000 price area:

I would target a long entry in the $35,000 price area, set a stop loss either below the $15,500 low and target a 1:3 Risk/Reward, or a stop loss below the previous trading range at $25,000. Look for a double bottom around the Breakout Support area at $31,800 with a strong bull signal and confirmation bars. From there, reasonable take profit targets include 1:1 Risk/Reward at $42,300, just below the current price at $51,000, just below the previous all-time high at $65,000, and just below $100,000 which is a psychologically even number target.

 Trade Idea 

Long Entry: $35,575.00
Stop Loss: $22,900.00
Take Profit #1: $42,300
Take Profit #2: $65,000
Take Profit #3: $98,000
Risk/Reward Ratio: 1:5

 Key Takeaways 

1. Three pushes up toward a Resistance Area of $52,800
2. Resistance area is derived from the 2021 Head and Shoulders pattern
3. Wait for the price to pullback between 30-50%, and look for a double-bottom reversal pattern near $35,000
4. Long at 1:5 risk reward and take profit at three key levels
5. RSI is overbought at 78.00 which supports the pullback.

 Trading Tip 
Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough.

 Risk Warning! 
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!

Find me at TradingView.com/u/TraderEngineering/

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