BTCUSD | Perspective for the new weekThe volatility of Bitcoin during the course of the weekend continued with a sudden drop to $33,500 which was immediately followed by a sharp recovery by a couple of thousand dollars. In the last 3 days; Swings at decisively overcoming the $40,000 (Neckline and Key level) barrier proved abortive as every attempt was met with a vigorous rejection dipping further into the $33,500 area. With the appearance of what looks like a Double bottom structure ( a strong reversal pattern) at the Demand zone indicated on the chart describes a "potential" change in trend and a momentum reversal from prior leading price action, I look forward to a rally in the coming week(s) with Breakout/Retest of Neckline @ $40,000 serving as a signal for entry.
Tendency: Uptrend (Bullish)
Structure: Impulse Leg | Supply & Demand | Double Bottom (reversal pattern)
Observation: i. The appearance of a Double Bottom look-a-like describes the drop of price to $31,100 area, a rebound to $40,000 area, another drop to a similar level as the original drop, and finally, another rebound appears to build at the time of this report.
ii. In this regard, the twice-touched low is considered a Support level (Demand zone) for a future buying opportunity.
iii. The Double Bottom following a major downtrend (Impulse Leg) which began on the 10th of May 2021 signals the reversal and the beginning of a potential uptrend.
iv. For me, the second Key level @ $34,500 shall serve as a borderline for buying opportunity as anything below this level shall be invalid for a potential rally.
v. For the very cautious traders who prefer to be on a safe side :), a Breakout/Retest of Neckline (Key level I) @ $40,000 ( a psychological level) might be a comfortable haven for a rally continuation... Trade consciously :)!
Trading plan: BUY confirmation with a minimum potential profit of 1,700 pips.
Risk/Reward : 1:19
Potential Duration: 7 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
