Do you remember this trading setup? Bitcoin has bounced off a very strong resistance level for the fifth time and is now retesting it. This pattern, marked by the points labeled 1, 2, 3, and 4, shows Bitcoin's repeated attempts to break through, each time facing rejection but setting higher lows. Currently, Bitcoin is consolidating just below the resistance, suggesting weakening selling pressure.
Key Insights:
Technical Indicators: RSI is approaching overbought territory, and Bitcoin is trading above key moving averages, indicating bullish momentum.
Volume Analysis: Watch for a surge in trading volume during the retest phase to confirm strong buying interest and a potential breakout.
Fundamental Factors: Growing institutional adoption and macroeconomic factors like inflation concerns are driving more investors towards Bitcoin.
Strategy:
Prepare for a potential breakout by setting prudent position sizes, defining stop-loss and take-profit levels, and looking for confirmation of the breakout with strong volume. Stay informed and adjust your strategy as needed. Bitcoin is poised to potentially break its first major record on the way to $100,000.
Key Insights:
Technical Indicators: RSI is approaching overbought territory, and Bitcoin is trading above key moving averages, indicating bullish momentum.
Volume Analysis: Watch for a surge in trading volume during the retest phase to confirm strong buying interest and a potential breakout.
Fundamental Factors: Growing institutional adoption and macroeconomic factors like inflation concerns are driving more investors towards Bitcoin.
Strategy:
Prepare for a potential breakout by setting prudent position sizes, defining stop-loss and take-profit levels, and looking for confirmation of the breakout with strong volume. Stay informed and adjust your strategy as needed. Bitcoin is poised to potentially break its first major record on the way to $100,000.
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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.
Related publications
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.