Hey, yes. It is an uptrend. A definition of an uptrend says: "It is a series of higher highs and higher lows." Look at the chart. It is exactly what we have - an upside zigzag. What this information gives us? Almost nothing:) It says that the market installed a tendency to move higher. Will price move higher? Who knows....
Price is now approaching the higher zone that looks like resistance and the players who bought BTCUSD will start thinking of closing their positions. If they close their positions fast we will see a sharp retracement to 50% level, to the lower zone. The lower zone served previously as resistance and if tested it should turn into a support. If they will be closing their position with very small portions then we will see a consolidation formations just below the higher zone. There can be another scenario - price breaks the higher zone without stopping.
So, there are two ways how this asset may be attacked:
1) Wait for a retracement to 50% (support zone) and execute buy.
2) Wait for a consolidation to install and buy the breakout of the consolidation.
For a trend to stay intact you will need to put your stop all the way down below the recent higher low. If price goes below it then the uptrend is invalidated. If you place your stop below the consolidation and it is hit - the uptrend is still there and you will need to look for another buying opportunity. I personally prefer to place my stops at a place where the market tells me that I was wrong. I don't want to be kicked out only to know later that I was right from the very beginning. That's why the #1 setup provides a lower risk and #2 setup provides a higher risk.
But for now we wait for setups to appear. If they don't then no trading here.
Price is now approaching the higher zone that looks like resistance and the players who bought BTCUSD will start thinking of closing their positions. If they close their positions fast we will see a sharp retracement to 50% level, to the lower zone. The lower zone served previously as resistance and if tested it should turn into a support. If they will be closing their position with very small portions then we will see a consolidation formations just below the higher zone. There can be another scenario - price breaks the higher zone without stopping.
So, there are two ways how this asset may be attacked:
1) Wait for a retracement to 50% (support zone) and execute buy.
2) Wait for a consolidation to install and buy the breakout of the consolidation.
For a trend to stay intact you will need to put your stop all the way down below the recent higher low. If price goes below it then the uptrend is invalidated. If you place your stop below the consolidation and it is hit - the uptrend is still there and you will need to look for another buying opportunity. I personally prefer to place my stops at a place where the market tells me that I was wrong. I don't want to be kicked out only to know later that I was right from the very beginning. That's why the #1 setup provides a lower risk and #2 setup provides a higher risk.
But for now we wait for setups to appear. If they don't then no trading here.
IH - initial high
HL - higher low
HL - higher high