Market analysis and trading plan for Bitcoin (BTC) on the 4-hour time frame:
Disclaimer: This is not an invitation to buy or sell any asset. Please do your own research (DYOR).
Technical Analysis
1. Main Support and Resistance:
- Strong support: $102,850 (bottom orange line) and $99,436 (red line).
- Main resistance: $108,000 (nearest resistance zone, upper yellow line).
2. General Trend:
- BTC is moving in a consolidation phase between the $102,850 support zone and the $108,000 resistance zone.
- EMA 89 and EMA 200 show an uptrend (bullish), but the price is still stuck in the sideways zone in the short term.
3. Breakout Potential:
- If the price manages to breakout above $108,000 with high volume, BTC has the potential to rise further towards the next All-Time High (ATH).
- Conversely, if the price breaks below $102,850, there is a possibility of a deeper correction.
4. Volume:
- Current trading volume tends to be low, indicating that market players are waiting for a strong catalyst for a breakout or breakdown.
When Will BTC Rise and Break Its ATH?
BTC needs to break through the $108,000 resistance zone with heavy volume to start a rally to the next level. If the market sentiment remains bullish and there are no significant macroeconomic pressures, the chances of BTC reaching and breaking through the ATH ($120,000) could happen in the next few weeks to months, depending on the strength of the buyers.
Trading Plan
1. Long Position (Buy) if breakout above $108,000:
- Entry: $108,200 (breakout confirmation).
- Stop Loss: $107,000 (below the breakout level).
- Take Profit: $111,400 (ratio 1:2).
- Risk/Reward Ratio: 1:2.
2. Short Position (Sell) if breakdown below $102,850:
- Entry: $102,600 (breakdown confirmation).
- Stop Loss: $103,800 (above the breakdown level).
- Take Profit: $100,200 (ratio 1:2).
- Risk/Reward Ratio: 1:2.
Trading Execution Tips
1. Monitor Volume:
- A valid breakout or breakdown requires high volume. Do not enter a position if the volume is low.
2. Always Use Stop Loss:
- To protect capital, make sure stop loss is applied as planned.
3. Position Size:
- Adjust the position size to the capital and maximum risk you determine.
If you need further analysis or have additional details, please let me know.