3 options for traders when Bitcoin is about to breakout - Bitcoin Magazine







Bitcoin price is currently in a stalemate, trading within the expected range and over the past 48 hours falling to the previous wedge-trend trend line at $ 7,150 and once again returning to the support of $ 7,200 before recovered to a low area of ​​$ 7,400.


Currently, the price is consolidating in the range of $ 7,200 - $ 7,460. Next, the bull will push the BTC price to above recent lows to set the upper above $ 7,663 before making a move towards $ 7,992, coinciding with the 61.8% Fib retracement level.


Bitcoin breakout 1Daily USDT BTC chart. Source: TradingView


On Twitter, analysts are calling traders short from $ 8,000 to $ 8,100 because the MA 100 and 200 days are in this area and are expected to act as strong resistances.


This may be due to the fact that since March 13, Bitcoin price has increased by about 95%. But before reaching that area, Bitcoin needs to turn the $ 7,350 - $ 7,400 area into support.


Currently, traders who continue to buy dips and glance at order books on exchanges can see that traders are quite interested in buying below $ 7,200.


Bitcoin breakout 2


BTCT USD 4 hour chart. Source: TradingView


The 4-hour time frame shows that while prices are consolidating, volume is declining and this is a suggestion that Bitcoin is starting to lose momentum. The MACD has also turned negative and the RSI has dropped below 60. Weak volumes and sideways price action also increase the chances of BTC / USD falling below the support of $ 7,200 slipping to $ 6,900, after which is $ 6,750.


The bitcoin price is currently facing a few scenarios, with the current trend tending to bear. Put simply, it is necessary to increase the buying volume to overcome the current range and increase the Fib 61.8% retracement level at $ 7,992.


The alternative scenario involves Bitcoin losing support of $ 7,200 and when the price drops to retest lower support levels, investors will have no choice but to see the current level of interest in Does the order book show buy at major support to prevent falling to $ 5,800.


However, keep in mind that MACD is a lagging indicator.


Bitcoin breakout 3


BTCT USDT 3-day chart. Source: TradingView


Looking at higher time frames has some positives. On the 3-day chart, investors will notice that the MACD line is about to pull up above the signal line and the chart is currently printing a green bar above zero.


Bitcoin breakout 4


Weekly BTCT BTC chart. Source: TradingView


On the weekly time frame, the MACD is gradually starting to curve towards the signal line and although the chart is still negative, the color of the candle has changed from red to pink. The weekly RSI has also increased above 46 but it is still not in the rising zone.


More importantly, we can see that prices are getting close to an important pivotal point and the same can be said for $ 8,100.



BTCT USDT chart for 1 week. Source: TradingView


In short, at the moment there aren't many transactions for everyday traders because the risk seems bigger than the reward right now. Traders may be waiting for one of the following three scenarios:


  • A breakout above $ 7,500 with the expectation of reaching $ 8,000 - $ 8,500.

  • Wait for the price to rise to 61.8% Fib ($ 8,000) to open a short position.

  • Short now or wait for the price to drop below $ 6,900 with the target of $ 5,800.

Another thing worth remembering is that halving Bitcoin has only about 35 days left but with the covid-19s epidemic and the current global economic situation, halving will be a disappointment - especially, when it comes to short price action. term - like halving BCH on Wednesdays.


Whichever trade you choose, be sure to use the stop loss order.


You can see the price of Bitcoin here.


Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.


Annie


According to Cointelegraph








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