Chart Pattern/Trend Analysis
The main view of this trade idea is on the Daily Chart.
The largest of the cryptocurrencies, Bitcoin (BTC), appears to be in an Ascending Triangle chart pattern setup. The Resistance Line for the setup is observed around the 45,000 price level while the support trend line can be constructed from the higher lows of 32,933 and 37,560 respectively. If BTC breaks out from the Resistance line of the setup, expectations are for a continued rally towards 60,000. This view would be altered if BTC declines below the 37,425 price level.
Technical Indicators
The technical indicators support the bullish nature of the chart pattern setup. BTC crossed above its 100-SMA on the Daily chart. This was followed by an upward move from 43,180, taking the Supertrend indicator to Buy mode. At the time of publishing, the cryptocurrency is approaching the 45,000 Resistance line. The Awesome Oscillator is above 0 and green while the RSI is above the bullish 50 level.
The intra-day trend following indicators of BTC also display uptrends in the 15-Min, 2-Hour and 4-Hour time frames. Support for the cryptocurrency is seen around the 40,600 to 42,000 price range.
Recommendation
The recommendation will be to go long at market, with a stop loss at 37,425 and a target of 60,000. This produces a risk/reward ratio of 2.05.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to BTC.
The main view of this trade idea is on the Daily Chart.
The largest of the cryptocurrencies, Bitcoin (BTC), appears to be in an Ascending Triangle chart pattern setup. The Resistance Line for the setup is observed around the 45,000 price level while the support trend line can be constructed from the higher lows of 32,933 and 37,560 respectively. If BTC breaks out from the Resistance line of the setup, expectations are for a continued rally towards 60,000. This view would be altered if BTC declines below the 37,425 price level.
Technical Indicators
The technical indicators support the bullish nature of the chart pattern setup. BTC crossed above its 100-SMA on the Daily chart. This was followed by an upward move from 43,180, taking the Supertrend indicator to Buy mode. At the time of publishing, the cryptocurrency is approaching the 45,000 Resistance line. The Awesome Oscillator is above 0 and green while the RSI is above the bullish 50 level.
Recommendation
The recommendation will be to go long at market, with a stop loss at 37,425 and a target of 60,000. This produces a risk/reward ratio of 2.05.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to BTC.