Hi, traders!
Lets analyse in detail the technicals for BTCUSD . The price chart of Bitcoin suggests that there could be some more downside ahead.
The downward sloping linear channel, being formed on the daily timeframe , confirms that market sentiment becomes increasingly bearish . In addition, the triangle chart pattern, formed on the daily chart , implies that there is high uncertainty among traders as to the trend direction for Bitcoin over the short-term.
At the end of June, Bitcoin might have been way overbought, and since then has been making a series of lower highs, telling us that the buyers were getting a little bit less enthusiastic.
Now, the price is very close to a significant support level at $9,000, and the downside risk of breaking below $9,000 remains high. If Bitcoin to go below $9,000 per Bitcoin , it will be confirmed to go back down toward $7,000 or even lower.
Interestingly, over the long term, I strongly believe that Bitcoin is a good buy opportunity and remain bullish on Bitcoin . In addition, if we apply the Bollinger Bands Indicator we can see that it is moving sideways, and the price is floating near the lower bound. This indicates the probability of a short-term price appreciation for Bitcoin may be high, versus the continuation of a decline.
Conclusion
The price is moving sideways and we should wait for either a breakout above the $10,500 or below the $9,000, to be able to make a substantiated trading decision.
Active Trade Signal
- Buy at $9,500
- Stop-loss at $9,000
- Take-profit at $11,000
- Risk/reward ratio: 1:3 (very attractive)
Additional Trade Signal
- Place a sell-stop order to sell Bitcoin at $8,850 (in case, the price breaks through and below the $9,000 level, the order will be executed).
- Take-profit at $7,500 (or higher, depending on your risk aversion)
- Stop-Loss at $9,500