BTC Trade Idea: Reversal Zone
Market Context:
Bitcoin is approaching an uncharted territory between 101970 and 110200, where no historical resistance exists due to the all-time high level. This zone is psychologically significant and likely to attract profit-taking from early buyers and aggressive short-sellers, making it a prime area for potential reversals or consolidation.
Trade Setup:
Entry Strategy:
Short Position: Wait for signs of exhaustion, such as:
Large wicks on higher timeframes (e.g., 4H or daily).
Bearish candlestick patterns (e.g., shooting star, bearish engulfing).
Momentum indicators showing bearish divergence (e.g., RSI or MACD).
Enter a short position near the upper bound of 110200, with partial entries near 101970 if signs of weakness appear earlier.
Stop-Loss:
For shorts: Place stop-loss above 111500, beyond potential fake-outs.
For longs (breakout play): Place stop-loss below 109500, assuming the breakout level holds as support.
Adjust position size based on volatility within the zone.
Additional Notes:
Volume Confirmation: Monitor trading volume—high volume near resistance could signal a breakout, while declining volume might confirm a reversal.
Macro Events: Watch for macroeconomic news or crypto-specific developments that could drive speculative momentum in this region.
This setup assumes high volatility and requires active monitoring for precise entries and exits.
Bitcoin is approaching an uncharted territory between 101970 and 110200, where no historical resistance exists due to the all-time high level. This zone is psychologically significant and likely to attract profit-taking from early buyers and aggressive short-sellers, making it a prime area for potential reversals or consolidation.
Trade Setup:
Entry Strategy:
Short Position: Wait for signs of exhaustion, such as:
Large wicks on higher timeframes (e.g., 4H or daily).
Bearish candlestick patterns (e.g., shooting star, bearish engulfing).
Momentum indicators showing bearish divergence (e.g., RSI or MACD).
Enter a short position near the upper bound of 110200, with partial entries near 101970 if signs of weakness appear earlier.
Stop-Loss:
For shorts: Place stop-loss above 111500, beyond potential fake-outs.
For longs (breakout play): Place stop-loss below 109500, assuming the breakout level holds as support.
Adjust position size based on volatility within the zone.
Additional Notes:
Volume Confirmation: Monitor trading volume—high volume near resistance could signal a breakout, while declining volume might confirm a reversal.
Macro Events: Watch for macroeconomic news or crypto-specific developments that could drive speculative momentum in this region.
This setup assumes high volatility and requires active monitoring for precise entries and exits.
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The Ultimate Master of Trading, fulltime trader, sharing my own trades for free with 90% win rates
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