Hi there!
Here is an advanced technical analysis for Bitcoin based on chart patterns and indicators, PLUS a ready-to-use trading strategy and trade signals! Enjoy reading this idea and you’ll get exact instructions on how to trade Bitcoin over the next week and achieve profitability!
On a daily chart, BTC/USD seems to be set to strong growth over the next week.
Technically, we’ve got two patterns: an ascending trend channel and an ascending triangle. Both chart patterns represent a continuation type of pattern and indicate that an uptrend should be expected (is more likely than not).
In particular, there is an upward trend channel on a daily chart. The trendlines of this channel slope in an upward direction and the BTC price is making higher highs (Feb 8 and Feb 24) and higher lows (Feb 13 and Mar 4). This is a strong continuation pattern that confirms an upward trend signal.
Also, there is an ascending triangle, as shown on the chart. The trendline connecting the high prices is horizontal at $4,000, and the trendline connecting the low prices forms an uptrend. What this pattern means is that market participants have been selling BTC at $4,000 over the past two weeks, always putting a halt to rallies at the same price point, but that buyers are getting more and more bullish and stepping in at increasingly higher prices to halt sell-offs instead of waiting for further price declines. We know that an ascending triangle typically forms in an uptrend and forms a very strong bullish signal. If the rally continues above the $,4000 (beyond the triangle), that will generate a strong bullish signal.
In addition, we have a series of confirmatory signals from technical indicators. On a daily timeframe, the Stochastic oscillator (5,3,3) is growing, and the %K line is moving above the %D line. This confirms an upward trend and a buy signal.
The fact that the Stoch oscillator is approaching an overbought range also implies that a short-term correction downward is possible before BTC/USD continues to set new highs.
We’re also seeing that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves up and two corrective waves. The 1st take-profit price at $4,250 is precisely located at 61.8% of the Fibonacci sequence, and the 2nd one is located at 78.6% of the Fibonacci sequence. Basically, the Fibonacci Retracement further confirms that the price targets we’ve set are valid.
So, here is the summary of trade signals:
- Enter Long (Buy) now at $3,950. Otherwise, to buy at a better price, you should wait when the Stoch (5,3,3) enters an oversold range and the %K moves from below the %D line to above it. Watch for this signal very carefully by analyzing the chart, as presented above!
- Set the Stop-Loss at $3,750 - the next significant support level.
- Set the Take-Profit (partial close) at $4,250 - the next significant resistance level. The second Take-Profit should be set at $4,500.
- Forecasted P&L: +$475 or +12% (or +120% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 2.37x
If the price breaks through and above the $3,990 resistance - the continuation of an uptrend is expected. If that happens, the price will obtain a strong momentum and will rise by a significant amount at least to $4,250.
Otherwise, the price can drop through and below the current upward channel, and there will be excellent opportunities for short selling. The reversal (downtrend) signal will be generated if the price drops below the $3,750 support.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals.
This will allow you to stay on top of the current Bitcoin trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
Here is an advanced technical analysis for Bitcoin based on chart patterns and indicators, PLUS a ready-to-use trading strategy and trade signals! Enjoy reading this idea and you’ll get exact instructions on how to trade Bitcoin over the next week and achieve profitability!
On a daily chart, BTC/USD seems to be set to strong growth over the next week.
Technically, we’ve got two patterns: an ascending trend channel and an ascending triangle. Both chart patterns represent a continuation type of pattern and indicate that an uptrend should be expected (is more likely than not).
In particular, there is an upward trend channel on a daily chart. The trendlines of this channel slope in an upward direction and the BTC price is making higher highs (Feb 8 and Feb 24) and higher lows (Feb 13 and Mar 4). This is a strong continuation pattern that confirms an upward trend signal.
Also, there is an ascending triangle, as shown on the chart. The trendline connecting the high prices is horizontal at $4,000, and the trendline connecting the low prices forms an uptrend. What this pattern means is that market participants have been selling BTC at $4,000 over the past two weeks, always putting a halt to rallies at the same price point, but that buyers are getting more and more bullish and stepping in at increasingly higher prices to halt sell-offs instead of waiting for further price declines. We know that an ascending triangle typically forms in an uptrend and forms a very strong bullish signal. If the rally continues above the $,4000 (beyond the triangle), that will generate a strong bullish signal.
In addition, we have a series of confirmatory signals from technical indicators. On a daily timeframe, the Stochastic oscillator (5,3,3) is growing, and the %K line is moving above the %D line. This confirms an upward trend and a buy signal.
The fact that the Stoch oscillator is approaching an overbought range also implies that a short-term correction downward is possible before BTC/USD continues to set new highs.
We’re also seeing that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves up and two corrective waves. The 1st take-profit price at $4,250 is precisely located at 61.8% of the Fibonacci sequence, and the 2nd one is located at 78.6% of the Fibonacci sequence. Basically, the Fibonacci Retracement further confirms that the price targets we’ve set are valid.
So, here is the summary of trade signals:
- Enter Long (Buy) now at $3,950. Otherwise, to buy at a better price, you should wait when the Stoch (5,3,3) enters an oversold range and the %K moves from below the %D line to above it. Watch for this signal very carefully by analyzing the chart, as presented above!
- Set the Stop-Loss at $3,750 - the next significant support level.
- Set the Take-Profit (partial close) at $4,250 - the next significant resistance level. The second Take-Profit should be set at $4,500.
- Forecasted P&L: +$475 or +12% (or +120% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 2.37x
If the price breaks through and above the $3,990 resistance - the continuation of an uptrend is expected. If that happens, the price will obtain a strong momentum and will rise by a significant amount at least to $4,250.
Otherwise, the price can drop through and below the current upward channel, and there will be excellent opportunities for short selling. The reversal (downtrend) signal will be generated if the price drops below the $3,750 support.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals.
This will allow you to stay on top of the current Bitcoin trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
