Have you seen this insane Bitcoin rally to $7,500 ?!
The price has gained +20% in a single week.
In this Idea Monfex Research provides an expert , plus an active trading strategy and a trade signal. Enjoy reading this idea, and you’ll get exact instructions on how to trade Bitcoin and make profitable deals!
Technical indicators and chart patterns signal that Bitcoin is overvalued at current prices over the short-term investment horizon. So, Monfex expects Bitcoin market price to adjust downwards during the second half of May towards $6,500-6,800.
Then, a strong trend upwards is expected to continue.
We predict that during this week Bitcoin price will actually continue increasing because the market has gained strong momentum and an upward trend usually gathers the strongest momentum at its peak. There are two primary reasons for that.
Firstly, due to psychological factors.
Secondly, because there were many stop-loss orders of leveraged short positions placed at $6,000, and, when the price broke through the $6,000 level, many margin calls have been triggered, which by itself further intensified the trend up. The execution of stop-losses and margin calls effectively raised the price to the unsustainably high level at $7,450.
The short-term retracement downwards is also justified by the fact that the market price has substantially deviated from the central tendency, i.e. its mean value calculated using different methods, and, as a result, short-term traders have begun to fix their profits from long positions (and will be doing so over the next few days).
The long-term trend (with the investing horizon over the next year) - is still downward. Based on Monfex’s forecasting model, an explicit signal of the beginning of the next long-term bull cycle for Bitcoin will be generated, when the price rises above the $8,500.
Monfex’s forecast is as follows:
We believe that the trend UPWARD will continue and the Bitcoin price will achieve $7,700, followed by the short-term retracement downwards to $6,500-$6,800, and then two scenarios are possible:
- The beginning of the new long-term wave of a bull cycle for Bitcoin with targets above $20,000, or
- The continuation of the long-term bear cycle for Bitcoin with targets below $3,000.
Currently, we do not have any explicit signals of a possible reversal downwards, and the continuation of the long-term bear cycle is NOT anticipated.
At this moment, the base-case scenario for Bitcoin remains long / upwards, and the trade signal is BUY.
Today the following signal is active:
- Buy Bitcoin in at $7,000. You can set a Buy-Limit order or use a Market order at $7,000.
- Stop-Loss: $6,330 - the next significant .
- Take-Profit: $8,500 - the next significant .
- Forecasted P&L: +$14,500 or +200%, calculated per 1 Lot with 10x Leverage at Monfex
Risk/Reward Ratio: 1.95x
Bitcoin’s long bear market may finally be over, as the price surged above $7,500 for the first time in nine months. The price surge has negated nearly 25% of losses incurred since December 2018, which we believe is signaling the continuation of a .
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To your trading success,
This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.
The signal has proved to be correct so far, and we’re in profit!
I confirm that the short-term trend remains upwards at this point.
Most probably, the trend UPWARD will continue and the Bitcoin price will achieve $8,500-$9,500, followed by the short-term retracement downwards to $7,500, and then the most likely scenario is the beginning of the new long-term wave of a bull cycle for Bitcoin with targets above $20,000.
To your trading success,