BITCOIN TODAY - STILL THE KING OF THE CEREMONY (TA+TRADE PLAN)Price Levels and Resistance Zones:
The chart shows several key resistance and support levels marked by blue horizontal lines.
Major Resistance Levels:
$73,654.77
$71,552.73
$69,730.95
Support Levels:
$65,947.27
$60,061.54
$52,774.45
Bitcoin is currently trending upward, with price action near $70,734.95, approaching the resistance zone at $71,552.73.
VMC Cipher B Divergences:
The VMC Cipher B indicator shows bullish momentum with green dots, signaling possible upward continuation.
The RSI and Stochastic lines are also above mid-levels, suggesting continued bullish momentum.
RSI (Relative Strength Index):
RSI (14, close) is at 77.25, indicating overbought conditions. This could mean a possible retracement or consolidation in the short term. However, a strong uptrend may continue if Bitcoin maintains support levels above 70.
Stochastic Oscillator:
Stochastic (14, 1, 3) is also at a high level, around 86.19, indicating overbought conditions. This aligns with the RSI and could signal a need for caution on long positions until the oscillator moves back to a neutral or oversold region.
HMA+ Histogram:
The histogram indicates some bullish divergence, but recent bars are turning red, signaling a potential pullback or pause in momentum. Monitoring this for further bearish signs is essential, especially if it crosses below zero.
Trading Plan
Short-Term Strategy:
Entry: Consider entering a long position on a pullback to support around $69,730.95 if bullish signals persist.
Stop-Loss: Place a stop-loss below the $65,947.27 support level to limit potential downside risk.
Take-Profit: Target $71,552.73 as the primary take-profit level. If momentum remains strong and BTC breaks above $71,552.73, consider holding for $73,654.77.
Medium-Term Strategy:
Entry: Buy on confirmation of a breakout above $71,552.73 with strong volume.
Stop-Loss: A stop-loss slightly below the breakout level at $69,730.95.
Take-Profit: Set a take-profit target around $73,654.77. If Bitcoin breaches this, reassess the position for potential gains towards higher levels.
Risk Management:
Position Sizing: Risk no more than 1-2% of the trading account on each trade.
Trailing Stop: Implement a trailing stop if Bitcoin strongly surpasses $71,552.73, to lock in gains while allowing for additional upside.
Monitoring Indicators:
Keep an eye on RSI and Stochastic Oscillator for any signs of bearish divergence or weakening momentum.
Monitor VMC Cipher B for any shift in green dots to red, which could indicate potential retracement.
Overall Market Sentiment:
Given the current uptrend and approach to resistance, Bitcoin shows bullish sentiment. However, indicators suggest overbought conditions, so caution is advised.
