There are some great trading opportunities coming up as BTC is trending upwards.
First of all let’s discuss the . We can see that after the large sudden drop from $12,000 to $9,800 the has reduced and the price started trending upwards with moderate consistency.
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.
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.
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 high risk option would be to exit slightly underneath a horizontal level of psychological resistance, for instance around $12,000 or even $12,500.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
– Trading Guru
This post does not provide financial advice. It is for educational purposes only!