Bitcoin (BTC/XBT) Daily Long&Short Trade Setups 2021/03/12

Market Overview

• Price Action: Bitcoin continues to inch slowly, but surely, upwards towards the AllTimeHigh of $58.4K. In fact, price came within a couple hundred dollars of the ATH. The fact that price is retracing but not collapsing from the retrace indicates that so far there hasn't been a major rejection from that resistance level and that we are likely going to have further attempts at the ATH. What price action looks like during those attempts will be key in determining whether $58K is a double top or if it will turn from resistance to support and propel prices to $70-80K+.
  
• Patterns: N/A
  
• Areas of Interest: The area(s) of interest for me are the 200MAs @ $56-56.3K and the highs/ATH @ $58.2-58.4K. Once price reaches one of these areas, I will monitor for entry confirmations. If the entry confirmations are aligned, I will take a trade and share the my trade in real time. Of course, it is possible we just pump to ATH of $58K directly from here, in which case we will be looking for trading opportunities at that level.
  

Trade Setups
Below are the potential trade setups that I would be interested in trading:

Long Trade Setup #1: Retest and Continuation (200MAs)
1. Price Action: Price needs to move back down to the 200MAs, currently projected to be @ $56-56.3K by the time price reaches it, and bounce back up.
2. Trade Entry Confirmations: Bullish candlestick pattern, above average volume, MACD bottoming

Long Trade Setup #2: Breakout and Continuation
1. Price Action: Price breaks above and falls back down to $58.2-58.4K and bounce back up.
2. Trade Entry Confirmations: Bullish candlestick pattern, above average volume, MACD bottoming

Short Trade Setup #1: False Breakout
1. Price Action: Price breaks above and then falls below the high @ $58.2-58.4K, forming a bull trap
2. Trade Entry Confirmations: A breakout candlestick followed by a breakdown candlestick, above average volume on both breakout candle and breakdown candle, MACD topping out

My Recent Trades

• 2021/ 03/01: I had a winning trade! I entered long @ $46,288.00, SL @ $45797.19, price reached a high of $49,470.0, giving a risk reward ratio of 6.5:1.
  
• 2021/ 02/28: I had a winning trade! I entered long @ $44,875.0, SL @ $43,800.0, price reached a high of $45,530.6, giving a risk reward ratio of 0.6:1.
  
• 2021/ 02/22: I had a winning trade! I entered long @ $56,850.0, SL @ $56,379.0, price reached a high of $57,274.0, giving a risk reward ratio of 0.7:1.
  

DISCLAIMER: I am NOT a financial advisor and this post is NOT financial/investment/trading advice. I am simply sharing what I am doing, and I will not be responsible for any actions you take based on the analysis and comments that I provide. The cryptocurrency market is extremely volatile, and you WILL lose all your money if you are inexperienced! DO NOT risk any money that you cannot afford to lose and always be cautious and manage your risk!

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