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BTCUSD Long – Bullish Start of the Week Fueled A 4-Hour Channel Break-out Towards $55K
DISCLAIMER: I am not a financial advisor. All contents on this blog are solely my own personal views and for Cryptocurrency Trading education/entertainment purposes only. Cryptocurrency Trading is very risky. Losses can exceed deposits. Enter with discretion.
Ask any Bitcoin maxis or die-hard fans, who can forget the epic day on February 8, 2021. This is the rocket ship entry made by Elon Musk and his company Tesla by purchasing a staggering $1.50 Billion worth of Bitcoins!
What happened next? It drove domino effect on the king coin price action where BTCUSD price ascended in a bullish channel for 13 straight days, that’s a 2-week streak, reaching a new all-time high of $58K+! Just a $2K shy in reaching the psychological top of a $60K priced Bitcoin. Then the following day resulted the bubble effect, double top candles formed on February 21-22, 2021 signaling the price correction. The danger of Bitcoin falling is that alts will go down with it as well. No exceptions. That is the result of the king coin’s 60% dominance in the crypto markets.
Since February 22,Bitcoin traded in a bearish descending channel before it finally reached its recent local bottom found at $43K. The sell-off resulted at least a total of 74% price correction from its recent ATH.
But the Bitcoin managed to start the month of March strong, immediately printed a bullish and green candle showing lots of strong buying pressure. I always believe this price action triggered a massive buybacks from big investors and retail traders alike.
I have been monitoring Bitcoin’s price very closely since its recent fall for some time now. Currently at the time of writing this article, BTCUSD’s 4-hour charts are very strong. This week’s price action did managed some small pullbacks after the weekly high of $50K+ and I speculated at least a 50% price spike down at least towards its Fibonacci retracement # 0.236 in reference from the ATH price and recent low.
So I don’t want to miss Bitcoin’s move today or even this week. Back to the 4-hour charts, it sent a strong buy signal after more than 24 hours period of consolidation from the weekly high. Bitcoin’s Fibonacci # 0.382 offers strong support at $47-48K range. It also touched the 4-hour Ichimoku Cloud twice confirming the bullish run.
My point of entry is to wait the $50K re-testing first, once it confirms to offer support. Then that would be the buy entry. I will set a short-term profit taking on the $55K found in the Fibonacci # 0.786. Stop loss will back at the Fibonacci # 0.236 $46K level. This trade gives me a total of 1.250 Risk/Reward ratio.
Not much of a trade though as you know crypto markets is subject to extreme price volatilities. Crazy stuff indeed if you ask me! So I’m just looking for a quick and short-term opportunity with lower risk for this trade plan.