Bitcoin 4HR Triple-Top! About to Reverse to $34,500?
Bitcoin (BTC/USD) is testing the Weekly Bull Channel resistance and potentially forming a triple-top reversal pattern. If the price fails to hold above $38,000, we could be looking at a pullback to the 4HR 200EMA at $34,500.
How do we trade this?
We're in a bull channel, which means our bias should be to the upside. With the price levels being near the Weekly Bull Channel Resistance, that long bias has to be put on hold. RSI is around 63.00, and we may form a triple top. If that happens and we get a strong reversal signal bar and confirmation, a short to the $34,500 area is reasonable with a stop loss just above $38,000.
Longing at this price ($37,200) would necessarily include a stop loss just below channel support at around $36,000. A proper take profit would be at the Weekly Bull Channel resistance of $38,000, leaving us with a 2:1 Risk/Reward ratio. This could be an ideal scalp if you reduce your max position size by half, but the probability of profit longing is not high enough given the close resistance.
Key Points
1. Bitcoin is still in a Bull Channel.
2. Price is Near Weekly Bull Channel Resistance.
3. Potential Triple Top Forming.
4. RSI at 63.00, There's More Downside than Upside.
5. Wait for a Sell Signal to Short.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
How do we trade this?
We're in a bull channel, which means our bias should be to the upside. With the price levels being near the Weekly Bull Channel Resistance, that long bias has to be put on hold. RSI is around 63.00, and we may form a triple top. If that happens and we get a strong reversal signal bar and confirmation, a short to the $34,500 area is reasonable with a stop loss just above $38,000.
Longing at this price ($37,200) would necessarily include a stop loss just below channel support at around $36,000. A proper take profit would be at the Weekly Bull Channel resistance of $38,000, leaving us with a 2:1 Risk/Reward ratio. This could be an ideal scalp if you reduce your max position size by half, but the probability of profit longing is not high enough given the close resistance.
Key Points
1. Bitcoin is still in a Bull Channel.
2. Price is Near Weekly Bull Channel Resistance.
3. Potential Triple Top Forming.
4. RSI at 63.00, There's More Downside than Upside.
5. Wait for a Sell Signal to Short.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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