$BB Let's analyze the BB/USDC chart on the 1-month (1M) timeframe to create a profitable trading strategy with take profit (TP), stop loss (SL), and responsible leverage for the short, medium, and long term. The current price is 0.1084, and the chart shows a recent downtrend with resistance around 0.2600 and support at 0.1084 (current level).
### Context of the analysis
- Trend: Bearish over the long term, with a peak in May and a steady decline since then.
- Indicators:
- RSI: It is close to low levels (the exact value is not visible, but it appears to be below 50), suggesting that the asset may be oversold, but there are no clear signs of a reversal.
- Volume: Has decreased, indicating lower buying interest and a possible continuation of the downtrend.
- Key levels:
- Resistance: 0.2600 (recent high).
- Support: 0.1084 (current level, possible temporary floor).
- Next support: 0.1045 (24-hour low).
Since you're looking for short-, medium-, and long-term entry options, and the chart shows a bearish trend, let's structure a responsible leveraged short-selling strategy.
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### Trading Strategy
#### 1. Short term (1-7 days)
- Entry (Short): Sell at 0.1084 (current price).
- Take Profit (TP): 0.1045 (recent 24-hour low, a move of -3.6%).
- Stop Loss (SL): 0.1165 (highest in the last 24 hours, a risk of +7.4%).
- Risk/Reward Ratio (R:R): 1:0.5 (not ideal, but the short term seeks quick movements).
- Leverage: 3x (low risk, since the expected movement is small and the SL is close).
- Reasoning: The price is at a support level, but the decreasing volume and downtrend suggest it could break down to the next support level at 0.1045. If the price rises to 0.1165, it would invalidate the short-term bearish scenario.
#### 2. Medium term (1-4 weeks)
- Entry (Short): Sell at 0.1084.
- Take Profit (TP): 0.1000 (a psychological and potential support level, a movement of -7.7%).
- Stop Loss (SL): 0.1260 (above intermediate resistance at 0.1200, a risk of +16.2%).
- Risk/Reward Ratio (R:R): 1:0.47 (higher risk, but the expected movement is greater).
- Leverage: 2x (conservative leverage for a longer time horizon).
- Reasoning: The downtrend could continue toward lower levels, and 0.1000 is a psychological level that could act as support. The SL is placed above the resistance to prevent false breakouts.
#### 3. Long term (1-3 months)
- Entry (Short): Sell at 0.1084.
- Take Profit (TP): 0.0800 (a lower support level, estimated by trend extrapolation, a movement of -26.2%).
- Stop Loss (SL): 0.1500 (above intermediate resistance, a risk of +38.4%).
- Risk/Reward Ratio (R:R): 1:0.68 (significant risk, but the profit potential is greater).
- Leverage: 1x (no leverage, to minimize risk over a long horizon).
- Reasoning: The long-term downtrend suggests the price could continue to fall toward lower levels. The 0.0800 level is an estimate based on the magnitude of previous declines. The SL is further out to allow room for possible corrections.
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### Risk Management
- Position size: Adjust your position size so that the total risk (in case the SL is reached) does not exceed 1-2% of your total capital.
- Responsible leverage: Leverage is reduced as the time horizon increases to minimize liquidation risk.
- Monitoring: Monitor the RSI and volume for potential reversal signals (e.g., an RSI below 30 could indicate overselling and a possible bullish correction).
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Note: This strategy assumes the downtrend will continue. If the price breaks higher (above 0.1165 in the short term or 0.1260 in the medium term), consider closing the position and re-evaluating. To confirm more precise levels or look for additional patterns, it may be helpful to look for more data. Would you like me to research a cryptocurrency and provide an analysis?
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