Here is the latest technical analysis of the Bitcoin price chart, brought to you by Monfex - a revolutionary cryptocurrency trading platform.
Chart patterns analysis
On the daily price chart, we've got a strong pattern of an acceding trend channel. The trendlines of this channel slope in an upwards direction, within which the price has been making higher highs and higher lows over the past two months.
This dynamic represents a continuation chart pattern that confirms an upward trend signal. We expect the price to retrace downwards closer to $10,500, and then to continue its upwards rally.
Technical indicators of trend
A 30-days Exponential Moving Average is increasing. The EMA (30) is a critical long-term trend indicator confirming that the long-term trend for Bitcoin remains upward.
Technical indicators of entry/exit points
The primary oscillators, such as RSI and Stochastic, are trending downwards, but haven't approached an oversold range yet. This pattern indicates that the downward retracement probably is expected to continue over the next few days. So, in order to buy Bitcoin, you should wait until both RSI and Stochastic indicators approach an oversold range on a D1 chart.
Summary
The current uptrend has gained strong momentum and it might be difficult for the sellers to reverse the market downwards. Most probably, we are going to see a flat (or sideways) trend over the next week, and then the price will continue its strong rally upwards. We do not recommend opening short positions at this point. For those, who already have long positions, the best investing strategy would be a 'buy-and-hold' strategy.
Active trade signal
- Continue holding a long position in Bitcoin. If you have not bought yet - set a Buy Limit order at $10,500.
- Place a stop-loss order at $9,000
- Place a take-profit order at $20,000
In this trade, the expected risk/reward ratio is 6.4x, which is an extremely attractive exposure!
You can execute this trade signal (buy Bitcoin) at Monfex - an industry-leading crypto trading platform.
If you agree with this analysis, then Like and Share it! This will be the best feedback and encouragement for us!
Disclaimer
This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.
More info at TradingView
Crypto trading platform:
https://www.monfex.com/
Find new trading ideas on:
Facebook: https://www.facebook.com/monfexofficial/
Telegram: https://t.me/monfexofficial