This will be our last TA-Tuesday for 2020. In honour of the "king", it will be just about the BTC$ price action.
Since we are in uncharted territory and most people tend to focus on psychological numbers only, e.g. 25k, 30k, and even 50k, I have decided to zoom in to the 1h chart to see what short-term trades are at hand for the year end.
Bitcoin BTC$ (1h)
I am focusing predominantly on the Ichimoku cloud and the liquidity pools (volume bars on the right-hand side).
As you can see, the baseline (blue line) has been a very good trend indicator since the beginning of December. Whenever it was violated (to the downside), the lower band of the cloud provided support.
For short-term trades, I am trying to apply the observation I just described. Currently, we are below the baseline, which means that I will only engage in long positions that are very close to the lower band of the Ichimoku cloud. Also, we are in the process of forming a liquidity pool at around 27k.
I would like to see a quick reaction of the price back above the upper band of the cloud (or even above the baseline). But I am actually leaning towards short setups. However, before I engage, I want to see the baseline break into the cloud and see the price retesting the baseline (like it did around December 22nd).
I am afraid to say that there is no immediate trade that jumps out at me, but I hope I was able to give you some guidance as to what to look out for. And do not forget that price actions at year end can be brutal...
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