technical analysis and trading plan for Bitcoin (BTC/USDT)
2024-09-24

Technical analysis and trading plan for Bitcoin (BTC/USDT) by Blaž Fabjan

Bullish Pennant Formation:

The chart shows a bullish pennant pattern, which typically indicates a continuation of the prior upward trend. This suggests that once the consolidation within the pennant breaks to the upside, there could be a further rally.

Support and Resistance Levels:

Support Level: Around $61,758.48, which is holding the price within the consolidation.
Resistance Level: The next significant resistance is around $64,591.15.
If the price breaks the resistance of the pennant, it could target higher levels, potentially leading toward $68,556.87 as a bullish target.

Volume:

There’s a moderate amount of volume, but a volume breakout would be needed to confirm the movement in either direction.

Indicators:

VMC Cipher B Divergences is showing some green dots indicating bullish divergence, which further supports the potential for an upward breakout.

RSI (Relative Strength Index): The RSI value is around 53.94, suggesting that the market is in a neutral zone. It's neither overbought nor oversold, giving room for movement in either direction.

Stochastic Oscillator: Around 36.45, slightly on the lower end, signaling that Bitcoin might be in an oversold position on the short-term, indicating a potential upward reversal.

Trendline Projection:

The image also indicates an upward price projection beyond $67,000 if the pennant breaks to the upside, aligning with the bullish sentiment.

 Trading Plan: 

Buy Scenario (Bullish Breakout):

Entry Point: Consider entering a long position if Bitcoin breaks above the upper trendline of the pennant and surpasses the $64,000 resistance level with strong volume confirmation.
Take Profit Levels:
First target: $64,591.15 (immediate resistance).
Second target: $68,000.
Final target: $68,556.87 (upper resistance).
Stop Loss: Place a stop loss just below the $61,758.48 support level or just below the lower trendline of the pennant.

Sell Scenario (Bearish Breakdown):

Entry Point: If Bitcoin breaks below the lower trendline of the pennant and the $61,758.48 support level, it might indicate a bearish reversal. Consider entering a short position.
Take Profit Levels: Look for a price drop toward $60,301.68 or lower.
Stop Loss: Place a stop loss just above the pennant resistance level around $63,000 to limit risk.

Conservative Strategy:

Wait for a clear breakout from the pennant either way before entering any trade.
Watch for confirmation through volume increase, as this would validate the direction of the breakout.

Final Notes:
The chart leans toward a bullish continuation, but confirmation from volume and a breakout from the pennant are key before making any trades. Always manage risk carefully by setting stop losses and taking partial profits along the way.

I hope this information assists you in making more informed decisions during your trading activities. Enjoy! Blaž Fabjan