BTC looks ready to deliver a 9% move
Updated
Bitcoin prices are currently stuck in a rectangle pattern. A break below $66,000 could potentially send prices down to $60,000, a drop of 9%. Conversely, a break above $72,000 could lift prices towards $77,970 per coin.
Recent trends show a stronger dollar, particularly against the Euro and British pound. If this strength continues, it could negatively impact Bitcoin prices, potentially leading to a break below the $66,000 support level. Additionally, the Nasdaq 100 is up 7.5% from its last swing low on May 31st without a major correction. While shorting the Nasdaq 100 is a high risk idea, a pullback is likely and could influence Bitcoin, pushing it below the critical $66,000 support.
If Bitcoin breaks out of this rectangle pattern, traditional risk management suggests placing a stop loss at the high of the breakout candle for a bearish break and below the breakout candle low for a bullish breakout. This strategy allows the price to return to the pattern but prevents it from moving too deeply, which could result in reaching the other side of the pattern.
As always, do your own research and proceed with caution. This content is not directed to residents of the EU or UK.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Recent trends show a stronger dollar, particularly against the Euro and British pound. If this strength continues, it could negatively impact Bitcoin prices, potentially leading to a break below the $66,000 support level. Additionally, the Nasdaq 100 is up 7.5% from its last swing low on May 31st without a major correction. While shorting the Nasdaq 100 is a high risk idea, a pullback is likely and could influence Bitcoin, pushing it below the critical $66,000 support.
If Bitcoin breaks out of this rectangle pattern, traditional risk management suggests placing a stop loss at the high of the breakout candle for a bearish break and below the breakout candle low for a bullish breakout. This strategy allows the price to return to the pattern but prevents it from moving too deeply, which could result in reaching the other side of the pattern.
As always, do your own research and proceed with caution. This content is not directed to residents of the EU or UK.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Note
Bitcoin is holding up relatively well following the bearish breakdown, while smaller coins are showing losses. As for BTC, I would remain bearish as long as the price trades below Sunday's high of $67,029.Trade closed: target reached
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