BITCOIN is the KING and upward movement is highly expected!
2024-10-28

Technical analysis and trade plan by Blaž Fabjan

Support and Resistance Levels:

Resistance Levels:
72,198.87 USDT
68,556.87 USDT
64,591.15 USDT

Support Levels:
66,333.98 USDT
61,758.48 USDT
60,301.68 USDT
56,902.49 USDT

The key levels indicate potential areas where price action could face resistance or find support, which might serve as entry or exit points.

Indicators:

Wave Cipher Divergences:
Wave Cipher shows divergences suggesting a possible upward momentum. Positive divergences with green dots could imply bullish continuation.

Relative Strength Index (RSI):
RSI currently reads 55.19, indicating a neutral zone, leaning slightly bullish if it moves towards 60. This suggests Bitcoin isn't overbought or oversold and could continue a gradual trend.

Stochastic Oscillator:
The Stochastic shows a value around 70.52, close to the overbought region (above 80). If it breaks further upward, it may signal an overbought state, potentially leading to a correction.

Hull Moving Average (HMA):
HMA appears to trend slightly downwards, showing a bearish trend in the short term. The value of -6.58 indicates a bearish momentum, which may warn of a potential short-term pullback before any significant uptrend resumes.

 Price Action: 

The chart shows a potential breakout attempt around the 66,333.98 USDT level, where price action previously tested and retraced. A consolidation near this level could suggest that bulls are preparing for an upward push, especially if price breaks above 68,556.87 USDT.

 Volume Analysis: 

Volume shows a steady, moderate increase, supporting the upward trend. This moderate volume increase without large spikes could imply gradual accumulation rather than distribution.

 Trading Plan 

 Long Position (Bullish Scenario) 

Entry: Consider entering a long position if the price breaks and holds above the 68,556.87 USDT resistance level with volume confirmation.
Stop Loss: Set a stop loss slightly below the 66,333.98 USDT support level to mitigate risk in case of a false breakout.
Targets:
Target 1: 72,198.87 USDT — aligns with a strong resistance level and provides a conservative target.
Target 2: 75,553.67 USDT — the next significant resistance level, offering a favorable risk-to-reward ratio.

 Short Position (Bearish Scenario) 

Entry: Consider shorting if the price fails to hold above 66,333.98 USDT and shows bearish confirmation, such as a breakdown with high volume.
Stop Loss: Set a stop loss above 68,556.87 USDT to avoid risks from potential false breakdowns.
Targets:
Target 1: 61,758.48 USDT — a nearby support level that provides a logical take-profit point.
Target 2: 60,301.68 USDT — serves as a secondary target if the bearish trend strengthens.


Risk Management: Given the proximity to resistance and support levels, using a risk/reward ratio of 1:2 or higher is advisable to maintain favorable trade setups.

Monitor Divergences: Keep an eye on divergences in the Wave Cipher, RSI, and Stochastic Oscillator for potential trend reversals or continuations.

News and Market Sentiment: Be mindful of broader market sentiment and news events, as these can influence Bitcoin's price behavior, particularly near key levels.

This trading plan provides a structured approach to capitalize on potential breakouts or breakdowns, balancing both bullish and bearish scenarios.