BTC → Bitcoin to $40,000? Or to $80,000? Let's Answer.
Hello everyone, I am back! I spent the last couple of months finishing the trading course, which is now live. With that project complete, I am back to the analysis!
My Bitcoin Weekly analysis has not dramatically changed since March 25th. Bitcoin is now staring at the $65,000 to $74,000 resistance zone. A double top has formed after three pushes up, and we have closed below the Weekly 30EMA.
How do we trade this? 🤔
We ought to be looking for a long entry since Bitcoin is bullish on this timeframe. We now have three completed pushes toward the upside ending with a double-top in the resistance zone, we need to at least wait for a two-legged pullback toward the Support Zone between $40,000 and $45,000. Once successful signal and confirmation candles close above the Weekly 200EMA, it's reasonable to enter a long position at a 1:2 Risk/Reward ratio. Stop loss should be set below the Weekly 200EMA at $32,350, the first take profit at 1:1 Risk/Reward at $51,600 where the stop loss is moved to your entry price, then the final take profit at $61,300 before the Resistance Zone at $65,000.
💡 Trade Idea 💡
Long Entry: $42,000
🟥 Stop Loss: $32,350
✅ Take Profit #1: $51,600
✅ Take Profit #2: $61,300
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Three pushes up into the Resistance Zone at $65,000 - $74,000
2. Double-top reversal pattern completed inside Resistance Zone
3. Weekly close below the 30EMA, more confirmation of a pullback
4. Wait for a two-legged pullback toward the 200EMA in the Support Zone between $40,000 and $45,000
5. RSI is near 49.00 and below the Moving Average. Wait for contact and a final drop toward 40.00 in concurrence with the price action to enter.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
My Bitcoin Weekly analysis has not dramatically changed since March 25th. Bitcoin is now staring at the $65,000 to $74,000 resistance zone. A double top has formed after three pushes up, and we have closed below the Weekly 30EMA.
How do we trade this? 🤔
We ought to be looking for a long entry since Bitcoin is bullish on this timeframe. We now have three completed pushes toward the upside ending with a double-top in the resistance zone, we need to at least wait for a two-legged pullback toward the Support Zone between $40,000 and $45,000. Once successful signal and confirmation candles close above the Weekly 200EMA, it's reasonable to enter a long position at a 1:2 Risk/Reward ratio. Stop loss should be set below the Weekly 200EMA at $32,350, the first take profit at 1:1 Risk/Reward at $51,600 where the stop loss is moved to your entry price, then the final take profit at $61,300 before the Resistance Zone at $65,000.
💡 Trade Idea 💡
Long Entry: $42,000
🟥 Stop Loss: $32,350
✅ Take Profit #1: $51,600
✅ Take Profit #2: $61,300
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Three pushes up into the Resistance Zone at $65,000 - $74,000
2. Double-top reversal pattern completed inside Resistance Zone
3. Weekly close below the 30EMA, more confirmation of a pullback
4. Wait for a two-legged pullback toward the 200EMA in the Support Zone between $40,000 and $45,000
5. RSI is near 49.00 and below the Moving Average. Wait for contact and a final drop toward 40.00 in concurrence with the price action to enter.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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