BitcoinLong
BITCOIN AT ATH IS SHOWING WHO IS THE KING OF THE JUNGLE
Technical Analysis
Rising Wedge Pattern:
The chart displays a rising wedge pattern (bearish reversal structure). The price is likely at the breakdown point from the wedge.
Key support and resistance lines are marked, showing potential pullback zones.
Indicators:
RSI (Relative Strength Index): Shows overbought conditions as it hovers near 70. A pullback or consolidation may occur to relieve overbought pressures.
Stochastic Oscillator: The oscillator is in the overbought zone, signaling a potential short-term reversal or cooling-off period.
Money Flow Index (MFI): Indicates significant inflows of capital, but nearing overbought conditions, suggesting caution.
Price Levels:
Key support zones: $95,697, $91,721, and $88,671 (blue horizontal lines).
Key resistance zones: Wedge top (~$108,000) and further price targets above $112,000 and $120,000.
Trend Analysis:
The overall trend appears bullish in the medium term. A short-term retracement (to test lower support levels) is anticipated before further continuation upward.
The breakout target from the rising wedge suggests a potential correction to the $95,000–$96,000 range, followed by an upward move.
Trading Plan
Entry Strategy
Scenario A: Retracement to Support Zones
If Bitcoin pulls back to $95,000–$96,000, consider opening a long position, as this level aligns with historical support and a confluence of demand zones.
Scenario B: Bullish Continuation
If Bitcoin breaks above $112,000 with strong volume, open a long position targeting $120,000 and higher.
Stop-Loss Placement:
Place a stop-loss just below $94,500 for long positions to minimize risk, as a breach below this level could signal further bearish movement.
Take-Profit Levels:
Primary Target: $112,000 (previous high).
Secondary Target: $120,000 (psychological level and technical extension).
Risk Management:
Limit risk to 1–2% of your trading capital per trade.
Avoid over-leveraging as the rising wedge breakdown could result in increased volatility.
Monitoring the Trade:
Keep an eye on macro indicators (e.g., interest rate announcements, broader market sentiment).
Watch for divergence in RSI or Stochastic Oscillator, which could indicate trend exhaustion.
Bitcoin is at a critical juncture. A short-term correction is likely to test support levels before resuming its bullish trend. The outlined trading plan provides strategies for both pullback and breakout scenarios, ensuring disciplined risk management.
Rising Wedge Pattern:
The chart displays a rising wedge pattern (bearish reversal structure). The price is likely at the breakdown point from the wedge.
Key support and resistance lines are marked, showing potential pullback zones.
Indicators:
RSI (Relative Strength Index): Shows overbought conditions as it hovers near 70. A pullback or consolidation may occur to relieve overbought pressures.
Stochastic Oscillator: The oscillator is in the overbought zone, signaling a potential short-term reversal or cooling-off period.
Money Flow Index (MFI): Indicates significant inflows of capital, but nearing overbought conditions, suggesting caution.
Price Levels:
Key support zones: $95,697, $91,721, and $88,671 (blue horizontal lines).
Key resistance zones: Wedge top (~$108,000) and further price targets above $112,000 and $120,000.
Trend Analysis:
The overall trend appears bullish in the medium term. A short-term retracement (to test lower support levels) is anticipated before further continuation upward.
The breakout target from the rising wedge suggests a potential correction to the $95,000–$96,000 range, followed by an upward move.
Trading Plan
Entry Strategy
Scenario A: Retracement to Support Zones
If Bitcoin pulls back to $95,000–$96,000, consider opening a long position, as this level aligns with historical support and a confluence of demand zones.
Scenario B: Bullish Continuation
If Bitcoin breaks above $112,000 with strong volume, open a long position targeting $120,000 and higher.
Stop-Loss Placement:
Place a stop-loss just below $94,500 for long positions to minimize risk, as a breach below this level could signal further bearish movement.
Take-Profit Levels:
Primary Target: $112,000 (previous high).
Secondary Target: $120,000 (psychological level and technical extension).
Risk Management:
Limit risk to 1–2% of your trading capital per trade.
Avoid over-leveraging as the rising wedge breakdown could result in increased volatility.
Monitoring the Trade:
Keep an eye on macro indicators (e.g., interest rate announcements, broader market sentiment).
Watch for divergence in RSI or Stochastic Oscillator, which could indicate trend exhaustion.
Bitcoin is at a critical juncture. A short-term correction is likely to test support levels before resuming its bullish trend. The outlined trading plan provides strategies for both pullback and breakout scenarios, ensuring disciplined risk management.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.