BTC Potential Trade Setups 2020/12/21
Daily BTC Potential Trade Setups
Bitcoin has been trading in a range for quite some time. While there is a possibility of Bitcoin breaking out of this range and therefore making a powerful move, in this post I will be highlighting two potential trade setups should Bitcoin stay range-bound.
Scenario 1: Bounce off of Dynamic 200MAs Support
In this first scenario, we are waiting for price to hit the dynamic support found at the 200MAs @ 23500. We will be looking for bullish candlestick pattern and higher than average volume, as well as MACD histogram bottoming for confirmation before opening up a long position. Should price crash below 23500, be careful that markets might correct further downward and best to stay on the sidelines until markets stabilize.
Scenario 2: False breakout of All-time-high and breakdown
The second trade setup that we are waiting for is for price to go up to the ATH of 24300 and for a false breakout setup. This setup is characterized by price making a higher high than 24300, ideally closing beyond 24300 and then followed by price closing below 24300, ideally in the candle following the close above 24300. As confirmation, we want to see above average volume, especially for volume on the breakdown candle (the candle that closes down below 24300) to be above average. We will also want to see MACD histogram topping out for us to open a short position.
Scenario #3: Breakout
While not the 2 main setups highlighted on this chart, should price break 24300 with force, we can also wait for price to retrace back down to 24300 to open a long position, with volume, MACD histogram, and candlestick pattern confirmation.
Please follow for daily trading levels and potential trade setups on Bitcoin and Ethereum.
Bitcoin has been trading in a range for quite some time. While there is a possibility of Bitcoin breaking out of this range and therefore making a powerful move, in this post I will be highlighting two potential trade setups should Bitcoin stay range-bound.
Scenario 1: Bounce off of Dynamic 200MAs Support
In this first scenario, we are waiting for price to hit the dynamic support found at the 200MAs @ 23500. We will be looking for bullish candlestick pattern and higher than average volume, as well as MACD histogram bottoming for confirmation before opening up a long position. Should price crash below 23500, be careful that markets might correct further downward and best to stay on the sidelines until markets stabilize.
Scenario 2: False breakout of All-time-high and breakdown
The second trade setup that we are waiting for is for price to go up to the ATH of 24300 and for a false breakout setup. This setup is characterized by price making a higher high than 24300, ideally closing beyond 24300 and then followed by price closing below 24300, ideally in the candle following the close above 24300. As confirmation, we want to see above average volume, especially for volume on the breakdown candle (the candle that closes down below 24300) to be above average. We will also want to see MACD histogram topping out for us to open a short position.
Scenario #3: Breakout
While not the 2 main setups highlighted on this chart, should price break 24300 with force, we can also wait for price to retrace back down to 24300 to open a long position, with volume, MACD histogram, and candlestick pattern confirmation.
Please follow for daily trading levels and potential trade setups on Bitcoin and Ethereum.
Comment:
Right now Scenario 1 is playing out. We are bouncing off of the 200MAs, waiting for a 15min candlestick to close above ~23700 to take a long trade.
Comment:
Price breaking below 200MAs, stepping aside for market to establish new structure for the time being. Will update if new trade setup occurs.