Bitcoin (BTC/USDT) on daily chart - technical analysis+price pre
2024-09-23

Technical analysis Bitcoin (BTC/USDT) on daily chart by Blaž Fabjan

Price Range: The chart shows a long-term descending channel with resistance at the upper trendline and support at the lower trendline. The price is oscillating between these two levels.

Current Price: $63,532.74 as of the timestamp on the chart.

Support and Resistance:
Resistance is marked around $68,000 to $70,000.
Support is marked around $55,000.

Indicators Used:
RSI (Relative Strength Index): The RSI is currently around 63.05, showing slight bullish momentum but nearing overbought conditions.

Stochastic Oscillator: It shows an overbought condition with values above 80, indicating the potential for a pullback.

VMC Cipher_B_Divergences: This is a volume momentum indicator, showing possible divergence signals, with some indications of bullish divergence.

Patterns and Predictions

Channel Pattern: The price has been respecting the descending channel with a number of touches on both resistance and support lines. Currently, the price is near the midline of this channel.

Potential Move:
In the short term, the price could follow the channel’s structure and retest the support around $60,000 or even $55,000.

After touching support, a potential bounce is expected, which could lead the price to test the upper resistance of the channel at $68,000–$70,000.

 Trading Plan 

Short-term Bearish Scenario:

Entry: Consider entering short positions if the price fails to break the mid-channel line (around $64,000) and shows signs of reversal, with targets around the $55,000 support.
Stop-loss: Set a stop-loss just above the resistance line at $68,000.
Take-profit: Look to take profits around $60,000–$55,000, depending on risk appetite.

Long-term Bullish Scenario:

Entry: If the price successfully tests support ($55,000) and shows bullish reversal signals, consider entering long positions.
Stop-loss: Place a stop-loss slightly below the support zone ($52,000).
Take-profit: Initial target could be the upper boundary of the channel at $68,000, with an extended target beyond $75,000 if the price breaks out from the descending channel.

Breakout Scenario:

A breakout above the $70,000 resistance with strong volume could indicate the start of a bullish trend reversal.
Entry: Consider entering a long trade on the breakout above $70,000.
Take-profit: Target $75,000 to $80,000.

Risk Management:
Given the overbought conditions on the stochastic indicator, caution should be taken with long positions unless a strong confirmation of support bounce occurs.
Monitor volume and divergence signals from the VMC Cipher_B_Divergences indicator for additional confirmation.
This analysis assumes a near-term continuation of the channel pattern, with a possible bullish breakout in the longer term if price action shows strength at key levels.