technical analysis and trading plan for Bitcoin (BTC/USDT)
Technical analysis and trading plan for Bitcoin (BTC/USDT) by Blaž Fabjan
Bullish Pennant Formation:
The chart shows a bullish pennant pattern, which typically indicates a continuation of the prior upward trend. This suggests that once the consolidation within the pennant breaks to the upside, there could be a further rally.
Support and Resistance Levels:
Support Level: Around $61,758.48, which is holding the price within the consolidation.
Resistance Level: The next significant resistance is around $64,591.15.
If the price breaks the resistance of the pennant, it could target higher levels, potentially leading toward $68,556.87 as a bullish target.
Volume:
There’s a moderate amount of volume, but a volume breakout would be needed to confirm the movement in either direction.
Indicators:
VMC Cipher B Divergences is showing some green dots indicating bullish divergence, which further supports the potential for an upward breakout.
RSI (Relative Strength Index): The RSI value is around 53.94, suggesting that the market is in a neutral zone. It's neither overbought nor oversold, giving room for movement in either direction.
Stochastic Oscillator: Around 36.45, slightly on the lower end, signaling that Bitcoin might be in an oversold position on the short-term, indicating a potential upward reversal.
Trendline Projection:
The image also indicates an upward price projection beyond $67,000 if the pennant breaks to the upside, aligning with the bullish sentiment.
Trading Plan:
Buy Scenario (Bullish Breakout):
Entry Point: Consider entering a long position if Bitcoin breaks above the upper trendline of the pennant and surpasses the $64,000 resistance level with strong volume confirmation.
Take Profit Levels:
First target: $64,591.15 (immediate resistance).
Second target: $68,000.
Final target: $68,556.87 (upper resistance).
Stop Loss: Place a stop loss just below the $61,758.48 support level or just below the lower trendline of the pennant.
Sell Scenario (Bearish Breakdown):
Entry Point: If Bitcoin breaks below the lower trendline of the pennant and the $61,758.48 support level, it might indicate a bearish reversal. Consider entering a short position.
Take Profit Levels: Look for a price drop toward $60,301.68 or lower.
Stop Loss: Place a stop loss just above the pennant resistance level around $63,000 to limit risk.
Conservative Strategy:
Wait for a clear breakout from the pennant either way before entering any trade.
Watch for confirmation through volume increase, as this would validate the direction of the breakout.
Final Notes:
The chart leans toward a bullish continuation, but confirmation from volume and a breakout from the pennant are key before making any trades. Always manage risk carefully by setting stop losses and taking partial profits along the way.
I hope this information assists you in making more informed decisions during your trading activities. Enjoy! Blaž Fabjan
Bullish Pennant Formation:
The chart shows a bullish pennant pattern, which typically indicates a continuation of the prior upward trend. This suggests that once the consolidation within the pennant breaks to the upside, there could be a further rally.
Support and Resistance Levels:
Support Level: Around $61,758.48, which is holding the price within the consolidation.
Resistance Level: The next significant resistance is around $64,591.15.
If the price breaks the resistance of the pennant, it could target higher levels, potentially leading toward $68,556.87 as a bullish target.
Volume:
There’s a moderate amount of volume, but a volume breakout would be needed to confirm the movement in either direction.
Indicators:
VMC Cipher B Divergences is showing some green dots indicating bullish divergence, which further supports the potential for an upward breakout.
RSI (Relative Strength Index): The RSI value is around 53.94, suggesting that the market is in a neutral zone. It's neither overbought nor oversold, giving room for movement in either direction.
Stochastic Oscillator: Around 36.45, slightly on the lower end, signaling that Bitcoin might be in an oversold position on the short-term, indicating a potential upward reversal.
Trendline Projection:
The image also indicates an upward price projection beyond $67,000 if the pennant breaks to the upside, aligning with the bullish sentiment.
Trading Plan:
Buy Scenario (Bullish Breakout):
Entry Point: Consider entering a long position if Bitcoin breaks above the upper trendline of the pennant and surpasses the $64,000 resistance level with strong volume confirmation.
Take Profit Levels:
First target: $64,591.15 (immediate resistance).
Second target: $68,000.
Final target: $68,556.87 (upper resistance).
Stop Loss: Place a stop loss just below the $61,758.48 support level or just below the lower trendline of the pennant.
Sell Scenario (Bearish Breakdown):
Entry Point: If Bitcoin breaks below the lower trendline of the pennant and the $61,758.48 support level, it might indicate a bearish reversal. Consider entering a short position.
Take Profit Levels: Look for a price drop toward $60,301.68 or lower.
Stop Loss: Place a stop loss just above the pennant resistance level around $63,000 to limit risk.
Conservative Strategy:
Wait for a clear breakout from the pennant either way before entering any trade.
Watch for confirmation through volume increase, as this would validate the direction of the breakout.
Final Notes:
The chart leans toward a bullish continuation, but confirmation from volume and a breakout from the pennant are key before making any trades. Always manage risk carefully by setting stop losses and taking partial profits along the way.
I hope this information assists you in making more informed decisions during your trading activities. Enjoy! Blaž Fabjan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.