According to my Analysis, I have drawn two trend lines and a locked chart on the monthly chart of BTC which means that I predict that BTC can touch its monthly all-time high within a week. But after this point the market can move towards reversal and there is a possibility of retracing to around 0.5 level (possibly related to 50% retracement level or some other significant level).
From this analysis Guys you are concluding that:
1. The overall trend is bullish, so you will focus on long trades instead of short positions.
2. Since the larger time frame (monthly chart) is bullish, you have decided that it is better to look for trade opportunities on the long side.
3. However, there is always a risk of volatility and sudden reversals while trading on smaller time frames. Hence, you must place a stop loss with every trade so that if the market suddenly moves down, your losses are limited.
4. This stop loss placement will help you in risk management and capital protection on smaller time frames, as depending on the market, it can also lead to a reversal (retracement to around 0.5 level).
With this approach you want to carefully reap the benefits of the bullish trend, but will also give priority to risk management due to the unpredictable nature of the market. If you have any more specific doubts or want to discuss additional analysis points, please do $let us know!$BTC
