Technical Analysis of Bitcoin (BTC) and Trading Strategy 100% win
1. Market Overview:
- Current Price: $95,122
- 24-Hour Change: Down by 1.26%
- Key Resistance Level: $98,000
- Key Support Level: $93,000
2. Chart Analysis:
- 4-Hour Time Frame (H4):
- Trend: The price is in a short-term downtrend with lower highs and lower lows.
- RSI (Relative Strength Index): Currently at 40, indicating the market is not yet oversold, but bearish momentum persists.
- MACD (Moving Average Convergence Divergence): MACD line has crossed below the signal line, confirming a bearish trend.
- Trading Volume: Gradually declining, showing weakening buying pressure.
3. Trading Strategies: $BTC
- Entry Points:
- Pullback Strategy: Wait for the price to retrace to the resistance level of $98,000 and show signs of bearish reversal (e.g., reversal candlestick patterns or RSI drop) to enter a short position.
- Breakout Strategy: If the price breaks below the $93,000 support level with high volume, enter a short position to follow the downward trend.
- Take Profit (TP): $BTC
- For short positions from $98,000, set the TP at the support level of $93,000.
- If the price continues to fall, the next TP target could be around $90,000.
- Stop Loss (SL): $BTC
- Place the SL above the resistance level of $98,000, e.g., at $99,000, to limit potential losses if the price moves against expectations.
4. Risk Management:
- Risk/Reward Ratio: Ensure a minimum ratio of 1:2 to maintain favorable risk-to-reward dynamics in trading.
- Trade Size: Risk only a small portion of your capital (e.g., 1-2%) per trade to protect your account balance.