Predicting a Downward Movement for BTC
I've been closely observing the BTC/USDT Perpetual Contracts on Binance and after an extensive 4-hour timeframe technical analysis, I am predicting a potential downward movement for Bitcoin.
The key indicators I've used for my analysis are trends, a unique indicator called "Price Action - Support & Resistance by DGT" (source), and two Fibonacci Retracement for two distinct waves.
Firstly, the trend analysis on the 4-hour chart shows that Bitcoin has been consistently making lower highs, indicative of a bearish market. The "Price Action - Support & Resistance by DGT" also backs up this bearish outlook, displaying key areas of resistance that Bitcoin is currently struggling to overcome.
Moreover, by analyzing two significant price waves using Fibonacci Retracement, we can see that Bitcoin's price is rejecting at key Fib levels. The consistency of these rejections at similar Fib levels further cements my belief in an impending downward move.
Based on my analysis, I am predicting a potential fall in Bitcoin's value to 28022 USDT, which would constitute a 4.31% decrease from entry price level.
In terms of risk management, I would recommend setting a stop loss level at 30200 USDT. This level is selected as it is a key resistance point which if broken, would invalidate the current bearish trend.
As always, risk management is crucial. I would advise not to risk more than 1-2% of your portfolio on any single trade, including this one.
It's important to note that while my analysis is thorough and based on key indicators, trading always carries risk. Be aware of the potential risks and always make sure to trade responsibly.
The key indicators I've used for my analysis are trends, a unique indicator called "Price Action - Support & Resistance by DGT" (source), and two Fibonacci Retracement for two distinct waves.
Firstly, the trend analysis on the 4-hour chart shows that Bitcoin has been consistently making lower highs, indicative of a bearish market. The "Price Action - Support & Resistance by DGT" also backs up this bearish outlook, displaying key areas of resistance that Bitcoin is currently struggling to overcome.
Moreover, by analyzing two significant price waves using Fibonacci Retracement, we can see that Bitcoin's price is rejecting at key Fib levels. The consistency of these rejections at similar Fib levels further cements my belief in an impending downward move.
Based on my analysis, I am predicting a potential fall in Bitcoin's value to 28022 USDT, which would constitute a 4.31% decrease from entry price level.
In terms of risk management, I would recommend setting a stop loss level at 30200 USDT. This level is selected as it is a key resistance point which if broken, would invalidate the current bearish trend.
As always, risk management is crucial. I would advise not to risk more than 1-2% of your portfolio on any single trade, including this one.
It's important to note that while my analysis is thorough and based on key indicators, trading always carries risk. Be aware of the potential risks and always make sure to trade responsibly.