Bitcoin (BTC) has been in a corrective phase, retracing to catch up with the 50% Fibonacci levels from its all-time high around $70,000. After completing a five-wave decline, BTC found support around the $18,000 mark, initiating a corrective move towards the $40,000 zone through a five-wave ABC correction pattern.
As of the current analysis, it appears that BTC is working on completing wave 4 of 5, with a potential target around the $34,000 region. This could present a buying opportunity for investors, with a suggested stop-loss strategy if the price breaks down below $31,000 on a daily close.
For those trading with leverage, an alternative strategy could involve entering a short position within the $36,600-$36,680 range. It's advised to set a stop-loss slightly above $36,810. This decision is supported by the observation of a bear flag on the hourly timeframe, indicating a potential downward move. Targets for this short position include $35,500 and $34,600 areas.
Disclaimer: This is not financial advice. Always do your research and consider your risk tolerance before making investment decisions.
Good luck with your trades!
As of the current analysis, it appears that BTC is working on completing wave 4 of 5, with a potential target around the $34,000 region. This could present a buying opportunity for investors, with a suggested stop-loss strategy if the price breaks down below $31,000 on a daily close.
For those trading with leverage, an alternative strategy could involve entering a short position within the $36,600-$36,680 range. It's advised to set a stop-loss slightly above $36,810. This decision is supported by the observation of a bear flag on the hourly timeframe, indicating a potential downward move. Targets for this short position include $35,500 and $34,600 areas.
Disclaimer: This is not financial advice. Always do your research and consider your risk tolerance before making investment decisions.
Good luck with your trades!