Like usual, Bitcoin is respecting fib retracement levels.
It seems we're consolidation on the $620-$700 range.
A breakout of that area will possibly take us to our first target of $750 and if it breaks that it could hit our second target of $800 which is a long term and strong resistance. Breaking 800 would be extremely bullish but I would expect a pullback first.
Target 1 and 2 calculated through fib extension and are also important psychological barriers given they're strong resistance levels and round numbers.
We could work this out more than 1 way:
Risk/Reward ratio between 2 and 4 seems nice. Risking <$40 per coin for potential $100 (1st target around $750) or $150 (2nd target around $800) profit.
Pros:
- Less than 1 week for the halving
- Bull trend
Cons:
- Could be a sell the news event. Longs get squeezed. Dumb money gets scared because they might see price dropping during the halving. Remember in their head halving day and following days == moon, so they might get scared and loose confidence upon a dump. This would be a nice buying opportunity.
Note: Halving day/week doesn't necessarily mean the price will explode. It might take some time for the reduced amount of coins miners dump to take an effect on the market.
Sorry if chart looks messy.
It seems we're consolidation on the $620-$700 range.
A breakout of that area will possibly take us to our first target of $750 and if it breaks that it could hit our second target of $800 which is a long term and strong resistance. Breaking 800 would be extremely bullish but I would expect a pullback first.
Target 1 and 2 calculated through fib extension and are also important psychological barriers given they're strong resistance levels and round numbers.
We could work this out more than 1 way:
- Wait for breakout of the Consolidation Range + increase in volume. Dont forget no volume is a sign of possible pullback and failure to break through resistance. This would be the safest trade imo.
- Buy anything below the 61% retracement level, meaning below $660, go long and stop near the $620 area. This would be the more risky but profitable trade.
Risk/Reward ratio between 2 and 4 seems nice. Risking <$40 per coin for potential $100 (1st target around $750) or $150 (2nd target around $800) profit.
Pros:
- Less than 1 week for the halving
- Bull trend
Cons:
- Could be a sell the news event. Longs get squeezed. Dumb money gets scared because they might see price dropping during the halving. Remember in their head halving day and following days == moon, so they might get scared and loose confidence upon a dump. This would be a nice buying opportunity.
Note: Halving day/week doesn't necessarily mean the price will explode. It might take some time for the reduced amount of coins miners dump to take an effect on the market.
Sorry if chart looks messy.