Technical Analysis for Bitcoin (BTC/USDT) 1h chart on Binance.Hello!
I will make today, a techical analysis of price action, indicators and price projection with trade plans.
Price Action: Bitcoin appears to be in a channel up formation recently and has just broken out to the downside.
Volume: The volume profile indicates a decline, suggesting a potential lack of buying interest at current levels.
Indicators Analysis:
VMC Cipher B + Divergences: Shows a downward momentum with red dots appearing at the recent peaks indicating bearish divergence.
RSI (Relative Strength Index): Currently at 50.06, moving slightly downward. This neutral reading suggests there is no strong momentum either way, but the recent trend is slightly bearish.
Stochastic Oscillator: Shows a downward movement with the current reading at 37.36, indicating a bearish crossover in the lower half of the range which suggests potential further downside.
Price Projection:
The chart suggests a possible downward movement before a significant bounce. The projected path indicates a drop followed by a strong upward trajectory.
Trading Plans
Intraday Trading:
Strategy: Focus on short-term momentum and volatility.
Entry Point: Look for short positions if price breaks below the recent low around $61,553.95 with significant volume.
Stop Loss: Place a stop loss just above the recent high of the breakout channel, approximately $61,800.
Target: Aim for quick scalps in the range of $61,300 to $61,000 for intraday trades. Consider taking profits incrementally.
Scalping:
Strategy: Use smaller timeframes (1-minute to 5-minute charts) to capture quick price movements.
Entry Point: Enter short positions on bearish confirmation patterns such as breakouts from consolidation patterns or failed retests of resistance.
Stop Loss: Tight stop losses around $100 above the entry point to minimize risk.
Target: Look for quick profits in the range of $50-$150 per trade.
Swing Trading:
Strategy: Take advantage of the larger projected move.
Entry Point: Wait for the price to reach the anticipated lower level (around $60,000) as per the chart projection and show signs of reversal (e.g., bullish candlestick patterns, divergence in indicators).
Stop Loss: Set a stop loss below the key support level around $59,500 to protect against further downside.
Target: Aim for the upper projected target in the chart, around $68,000 to $70,000 for a higher reward-to-risk ratio.
Conclusion and Advice:
Short-Term (Intraday/Scalping): The current bearish indicators suggest short positions could be profitable. However, due to the overall market volatility, ensure tight risk management.
Long-Term (Swing Trading): There is potential for a significant upside after a possible near-term dip. Consider waiting for confirmation of reversal patterns at lower levels before entering long positions.
Advice:
For short-term traders, focus on short positions until the projected bottom is confirmed.
For long-term traders, look for buying opportunities at the lower levels indicated in the chart, aligning with the projected path.
Note: Always ensure proper risk management and use trailing stops to lock in profits while mitigating losses. Market conditions can change rapidly, and it's important to adapt to new information as it becomes available.
