Get ready for an action-packed week in the world of Bitcoin! With CPI data taking center stage on Wednesday, a major move is on its way, presenting exciting opportunities for swing trades.
Currently, the CPI stands at 4%, but expectations for Wednesday's data are at 3.1%. This significant change could lead to a decline, especially with the influence of volatile components that may reverse higher later in the year.
But here's the twist: if the data comes in higher than expected but still drops considerably, it could be a fake-drop scenario for Bitcoin. In that case, keep an eye out for a drop below the range lows. And if the price manages to get back inside the range, it's a perfect setup for a swing long trade opportunity towards the range highs.
Take a look at the chart below to visualize the setup idea. Notice that long wick in the 4-hour time frame? It's begging to be filled.
That wick is the key candlestick for me, and I strongly believe it will get filled. So, my setups are geared towards that wick being filled.
Currently, Bitcoin is below the 50EMA and the mid-range, which doesn't look promising. However, if we witness a pump from this point, surpassing these two levels, I'm eagerly longing the retrace/support.
Although the range appears less favorable due to large green candles at the highs (1-hour time frame) without a breakout, I still lean towards a final breakout below the range. But my priority lies in the wick-fill first.
If we successfully fill 50% of the wick at $31,175 and momentum doesn't pivot, my next target will be $31,700 instead of $31,500. The fact that the price didn't hit this level by just $200 makes me suspect that there was an intention to gather more liquidity in that zone.
Prepare yourself for an exhilarating ride as we navigate the world of #bitcoin . Keep a close watch on the wick, seize the swing trade opportunities, and let's see where this exciting journey takes us.
