1. General trend:
Previous Trend: The asset is showing an uptrend in its initial phase, with an impulsive move reaching a local high of $794. However, the current correction indicates an ongoing pullback. The drop towards current levels of $718 suggests that the price could be looking for support near key zones.
Key levels:
Resistance: $761 (upper Bollinger Bands indicator).
Support: $715 (lower Bollinger line), with nearby psychological support at $711 (seen on the liquidation map).
Technical indicators:
1. Bollinger Bands:
Recent expansion during the rise to $794, signaling high volatility.
Currently, the price is close to the lower band ($715), which could indicate a possible bullish reaction if it respects this level.
2. Moving average (MA):
MA 5 ($721): It is bearish, indicating selling pressure in the short term.
MA 10 ($738): Also bearish, confirming a pullback after the last rise.
3. RSI:
RSI (6): 24.8 (extreme oversold).
RSI (14): 44.2 (neutral, but close to low levels).
The divergence between the RSI on shorter and longer time frames suggests that the asset could be close to a technical bounce.
4. MACD:
MACD Line (-9.65): Negative and crossed downwards.
Histogram: Indicates bearish momentum, but is beginning to decline, which could indicate a slowdown in selling.
5. Volume:
Increase in selling volume during the fall, but with signs of stabilization. This reinforces the possibility of a nearby support.
2. Settlement map:
The current price ($717.3) is in an area where a large number of liquidation orders are concentrated below $711.3 (supports). This indicates that sellers could be looking to break this area to trigger liquidations in long positions.
On the sell orders side, the most relevant resistances are at $733.9 and $756.5, which coincide with previously identified technical levels.
3. Trading plan with x10 leverage:
Short term: (Intraday)
Strategy: Buy at key support with target at immediate resistance.
Admission: $715 (technical support area).
Stop Loss: $708 (below psychological support and liquidation zone).
Take Profit: $733 (Liquidation Map Resistance).
Risk/reward ratio: 2.57 (ideal for an intraday trade).
Medium term:
Strategy: Trade a range with the possibility of breakout.
Long Entry: $711 (if support is confirmed).
Short Entry: $733 (Key Resistance).
Stop Loss: 2% outside the marked areas.
Long Take Profit: $756 (next strong resistance).
Short Take Profit: $688 (previous local low).
Final summary:
The proposed operation takes advantage of both the support and resistance zones identified in the chart and the areas of greatest interest for liquidations. The key will be to manage the risk according to the identified levels and adjust the positions depending on the price reaction in the marked areas.
