There are some great trading opportunities coming up as BTC is trending upwards.
First of all let’s discuss the ascending channel . We can see that after the large sudden drop from $12,000 to $9,800 the volatility has reduced and the price started trending upwards with moderate consistency.
Whenever you trade an ascending channel the most important part is your entry point. As the channel is ascending, obviously you are considering a long position.
For a long position it is important that you enter as low as possible to maximize your risk-reward-ratio. That’s why I suggest following the orange line here and trade on the scenario that the channel holds.
You would want to enter near the support line of the channel arund a level of $10,800.
Overall we can see that there is a very good uptake possibility here on BTC /USD as we have only retraced half of the entire drop from $12,000.
The second part I want to highlight is the weekend-weekday approach. Often times volatility is lower in the weekend and the price starts breaking out of patterns when the week starts.
That’s why I drew the vertical line for you. This is the moment a new week will start, if the price hasn’t fully retraced yet at that time it’s probably good to consider a long position anyway.
The most logical direction for the next outbreak would be bullish given the overwhelming majority of bulls in the past 14 days, pushing the price up from $9,800 to $10,800.
For your exit strategy I want to highlight a few factors. I see three approaches here depending on the risk you want to take.
The low risk option would be to exit the trade near the golden pocket or 0.618 fib retracement. This is a logical first place where the price could find resistance.
The medium risk option would be to exit near the resistance line of the ascending channel , this would be the next logical place the price can find resistance.
The high risk option would be to exit slightly underneath a horizontal level of psychological resistance, for instance around $12,000 or even $12,500.
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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