Here's a potential trading setup that I spotted while looking at the price chart of Bitcoin today.
Bitcoin/Tether USD - 1D chart
RSI: Not overbought or sold
ATR: For setting of TP and SL (1.5 ATR)
Current Price of BTC: ~6360
Take Profit: 6759-6800 range
Stop Loss: 6100
Risk Reward: 1.534
We can see that BTC has been trading in the 6k range for awhile now despite being on a clear downtrend since the start of the year. Nonetheless, we see an opportunity here to catch the swing back up to 6.8k which is sitting on the very nice 50EMA (teal line) that you see in the chart. The 6.8k mark is a key level of resistance and was respected multiple times since the start of the year.
Trade: Swing trade
Reason: Due to the exciting FA and news that BTC enjoy recently, and especially since we are approaching the month of August, we have more than enough reasons to believe that this hype will drive price of Bitcoin upwards towards the next level of resistance. More risk-loving investors can even look to take profit at multiple levels such as 6.75, 6.8, 7.0 and all the way up to 7.4 (the next ).
Furthermore, the sliding of Bitcoin's price last week was probably due to the yet another hacking news at Bancor and some negative comments from some of the more influential individuals (such as Kenneth Rogoff -Former chief economist at the International Monetary Fund and Harvard University professor, Nouriel Roubini -NYU economist and Joseph Stiglitz -Nobel Prize-winning economist and professor at Columbia University)) which does not really have any "legs" as no user funds were compromised by the hack and the negative comments were basically far-fetched and thus should create no much short-term impact .
This gave us another validation that the market might have over-reacted and thus supports some potential upside for Bitcoin's price this coming week.