Hello Traders, here is my analysis / trade setup for BTCUSD.
Not much has changed since my last BTC post, the market has been asleep for the past couple of days so there hasn't been much action. Tomorrow when the stock market opens volatility will increase and BTC should start to move.
BTC hit the $34.4K Support level as predicted... Now the question is "Will this level hold and bounce, or will BTC break lower?"
- Truthfully there is no way of knowing, all we can do is make predications based off of probabilities.
- Right now the probabilities favor BTC holding the $34.4K support level and getting a bounce from here.
However... we have to be prepared for all scenario's. So if BTC doesn't hold the $34.4K level and breaks down further, how low could it go and what do we do?
- The next Major Support level for BTC is at $32.9K. This is the next level that BTC would hit.
- This level is a very strong level and the probabilities of BTC getting a sizeable bounce at this level are high.
- So if BTC hits this level and you entered a long at $34.4K, you will add to your position which will lower your average price.
- This is called DCA (Dollar Cost Averaging) and is a common strategy
What is the Target Level for BTC on a Bounce?
- The probabilities favor BTC getting a larger bounce, especially considering how massive the dump was the other day.
- It's possible that BTC rallies and re-tests the major resistance at $37.5K before getting rejected and heading lower.
- So my target take profit is at $37.5K
How I take Profits
- Where you want to take profits is up to you... I typically play between support and resistance and take partial profits at the .618 FIB for example.
- So for myself I will unload 50% profits at the .618 FIB at $36,346, raise my stop loss to that level and ride the rest of the profits out with the target being the next resistance of $37.5K. If $37.5K is hit, I might unload another 25% of profits and ride out the rest to potentially make even more.
- At the very least price might come back and hit the .618 Fib level which is where my stop loss is so I'm guaranteed profits there.
What's Next for BTC?
- After this scenario has played out, I am expecting BTC to eventually head even lower. Re-testing the Major low of last year at around $29K.
- I would expect a very large bounce at that level.
- It could be several weeks to months before that level is hit, we will just have to wait and see how things play out to get a better idea of what BTC will do.
Thanks everyone and best of luck trading!
Not much has changed since my last BTC post, the market has been asleep for the past couple of days so there hasn't been much action. Tomorrow when the stock market opens volatility will increase and BTC should start to move.
BTC hit the $34.4K Support level as predicted... Now the question is "Will this level hold and bounce, or will BTC break lower?"
- Truthfully there is no way of knowing, all we can do is make predications based off of probabilities.
- Right now the probabilities favor BTC holding the $34.4K support level and getting a bounce from here.
However... we have to be prepared for all scenario's. So if BTC doesn't hold the $34.4K level and breaks down further, how low could it go and what do we do?
- The next Major Support level for BTC is at $32.9K. This is the next level that BTC would hit.
- This level is a very strong level and the probabilities of BTC getting a sizeable bounce at this level are high.
- So if BTC hits this level and you entered a long at $34.4K, you will add to your position which will lower your average price.
- This is called DCA (Dollar Cost Averaging) and is a common strategy
What is the Target Level for BTC on a Bounce?
- The probabilities favor BTC getting a larger bounce, especially considering how massive the dump was the other day.
- It's possible that BTC rallies and re-tests the major resistance at $37.5K before getting rejected and heading lower.
- So my target take profit is at $37.5K
How I take Profits
- Where you want to take profits is up to you... I typically play between support and resistance and take partial profits at the .618 FIB for example.
- So for myself I will unload 50% profits at the .618 FIB at $36,346, raise my stop loss to that level and ride the rest of the profits out with the target being the next resistance of $37.5K. If $37.5K is hit, I might unload another 25% of profits and ride out the rest to potentially make even more.
- At the very least price might come back and hit the .618 Fib level which is where my stop loss is so I'm guaranteed profits there.
What's Next for BTC?
- After this scenario has played out, I am expecting BTC to eventually head even lower. Re-testing the Major low of last year at around $29K.
- I would expect a very large bounce at that level.
- It could be several weeks to months before that level is hit, we will just have to wait and see how things play out to get a better idea of what BTC will do.
Thanks everyone and best of luck trading!
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.