Trend Analysis
The main view of this trade idea is on the 4-Hour Chart. The cryptocurrency Bitcoin (BTC) is in a descending triangle setup with the resistance trendline observed around the lower highs of 70K and 59.2K and the support trend line is seen around 40K. Initial breakdown from 40K will take BTC towards 30K. A negation of this view will occur if BTC crosses above 60K.
The longer termed Daily Chart shows a similar move lower for the cryptocurrency. BTC is currently in sell mode with support observed at the 40K and 30K price levels.
Technical Indicators
There has been negative crossovers on the short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages. The cryptocurrency BTC is currently trading below the respective moving averages (Mas). The RSI is below 50 and is re-testing oversold levels. The KST is also in a sell mode.
Recommendation
The recommendation will be to go short at market, with a stop loss at 60K and a target of 30K. This produces a risk/reward ratio of 1.39.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to BTC.
The main view of this trade idea is on the 4-Hour Chart. The cryptocurrency Bitcoin (BTC) is in a descending triangle setup with the resistance trendline observed around the lower highs of 70K and 59.2K and the support trend line is seen around 40K. Initial breakdown from 40K will take BTC towards 30K. A negation of this view will occur if BTC crosses above 60K.
The longer termed Daily Chart shows a similar move lower for the cryptocurrency. BTC is currently in sell mode with support observed at the 40K and 30K price levels.
Technical Indicators
There has been negative crossovers on the short (50-MA), medium (100-MA) and long (200-MA) fractal moving averages. The cryptocurrency BTC is currently trading below the respective moving averages (Mas). The RSI is below 50 and is re-testing oversold levels. The KST is also in a sell mode.
Recommendation
The recommendation will be to go short at market, with a stop loss at 60K and a target of 30K. This produces a risk/reward ratio of 1.39.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to BTC.
Trade closed manually