The daily chart of Bitcoin (BTC) shows the following key levels:
Resistance Zones:
$68,000 - $70,000: This zone has acted as a significant resistance level multiple times.
A breakout above this range could signal a strong bullish continuation.$74,000 - $76,000:
This is the next major resistance level. If Bitcoin breaks through the $70,000 mark, this would be the next target area.
Support Zones:
$64,000 - $65,000: This zone has recently acted as support and could provide a good entry point if Bitcoin pulls back.$62,000 - $63,000: This is a more substantial support area, providing a potential lower entry point in case of a deeper correction.
Trading Strategy
Long Position
Entry Point:
Primary Entry: Around $65,000 - $66,000. This level offers a good risk-reward ratio given the recent support.Secondary Entry: Around $63,000. This level could be considered if there's a more significant pullback.
Stop-Loss:
Set the stop-loss slightly below the $62,000 support level to minimize potential losses in case of a downward breakout.
Take Profit Targets:
First Target (TP1): $70,000. This is the immediate resistance level. Partial profits can be taken here.Second Target (TP2): $75,000 - $76,000. This higher resistance level can be the target for the remaining position.
Risk Management
Position Sizing: Allocate a portion of your portfolio that you're comfortable risking, considering the potential for high volatility.Monitoring: Keep an eye on market sentiment and news that might impact Bitcoin's price. Adjust your strategy accordingly.
Bitcoin is currently showing a bullish trend with key resistance and support levels identified. The current market sentiment of "Greed" suggests potential for further upside but also calls for caution. Use the suggested entry, stop-loss, and take profit levels to manage your trades effectively. Stay updated with market conditions to make informed trading decisions.