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Quick glance: BTC is currently facing some flak around the $46,800 level. There has been some profit booking over the past few sessions. This analysis is aimed at taking advantage of the volatility in the markets.
Market in the last 24hrs
The past 24 hours saw Bitcoin breakout of the bearish shackles. Initially, markets appeared to be undergoing another consolidation. However, that changed soon after BTC and ETH shot up above the crucial resistance levels.
Today’s Trend analysis
Markets are pretty volatile towards the end of the week. This analysis aims to harness this volatility through an algo that acts on different levels in the short timeframe.
The pivot level for BTC is at $46,000. However, there is a narrow consolidation that is shaping up on the hourly time frame. Therefore, there are 2 possible short term setups at this moment.
There seems to be a strong resistance zone at $47,300. If Bitcoin manages to break above this level, we can take a long entry, with a stop loss at $46,750. The target would be the recent high at $48,000, which also happens to be a nice psychological resistance level. IT will be a decent long entry with a reward: risk ratio of 1.21:1. We also trail the position.
Another strategy would be a short entry. This will come into effect if Bitcoin falls below $46,750, as there is a lack of strong support until some time. This position can be entered with a trailing stop-loss and a hard take-profit setup of 5%.
In both these situations, I would keep a stop-loss in the algorithm, to hedge in case things go wrong.
Price volatility remained extremely low at approximately 1.65%, with the day's range between $46,645.77 — $47,418.71.
Price at the time of publishing: $46,877.58 BTC's market cap: $881.54 Billion
Out of 11 Oscillator indicators, 8 are neutral, 2 are bearish and 1 is bullish.
Out of 15 Moving average indicators, 1 is 'NEUTRAL', 3 are bearish and 11 are bullish.
Indicator summary is giving a ‘ BUY ’ signal on BTCUSD .
Volumes have remained constant over the past 24 hours. ----------------------------------------------------------------------------------------
The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .