Bitcoin/USDT on 1-hour timeframe Binance. TA+Trade plan by B.F.
2024-10-04

Descending Channel Pattern: 

The price is trading within a descending channel. The upper boundary (resistance) and lower boundary (support) are clearly defined.
Descending channels typically indicate a bearish trend, but if the price breaks out of the channel, it could signal a trend reversal.

 Possible Breakout to the Upside: 

The chart highlights the possibility of a breakout above the descending channel, supported by a bullish blue trendline.
The breakout area is noted around the 61,758.48 USDT level. If the price moves past this level, it could lead to further upside momentum.

 Volume: 

Volume appears moderate, indicating that the market has yet to show a strong momentum surge. A breakout on higher volume would confirm the upside move.

 Indicators: 

VMC Cipher B Divergences: This indicator shows multiple green dots, suggesting bullish divergence and potential reversal.

RSI (Relative Strength Index): The RSI is in neutral territory around 58.66, indicating no extreme overbought or oversold conditions. If it crosses above 60, it may confirm the bullish breakout.

Stochastic Oscillator: The stochastic shows a bullish signal, with the %K line at 90.29 and the %D line at 88.42. However, it’s approaching overbought territory, suggesting caution as there could be short-term pullbacks.

HMA Histogram: Shows a slight downtrend in the short term (negative values). If it turns positive, it could confirm the breakout move.

Support and Resistance Levels:

Resistance 1: 61,758.48 USDT (upper boundary of the channel and key breakout level).

Resistance 2: 64,591.15 USDT (previous high, and next major resistance zone if the breakout happens).

Support 1: 60,301.68 USDT (lower boundary of the channel).

Support 2: 59,000 USDT (psychological support and lower range of the broader consolidation).

 Trading Plan: 

 Long Position: 

Entry: Enter a long position if the price breaks and closes above 61,758.48 USDT with a confirmation candle (preferably on higher volume).

Stop Loss: Set a stop loss below the descending channel or at the 60,301.68 USDT support level to limit downside risk.

Take Profit: The initial target would be the next resistance at 64,591.15 USDT. Partial profits can be taken here, with further upside potential if momentum remains strong.

 Short Position (in case of failure to break out): 

Entry: If the price fails to break above 61,758.48 USDT and falls back into the channel, consider a short position targeting the support at 60,301.68 USDT.

Stop Loss: Place a stop loss slightly above 61,758.48 USDT to protect against an unexpected breakout.

Take Profit: Target the lower boundary of the channel and potentially below, near 59,000 USDT.

 Conclusion: 

The overall structure indicates a potential breakout from a descending channel. A confirmed breakout above 61,758.48 USDT could signal a bullish reversal and upside toward 64,591.15 USDT. However, if the price fails to break out, it may continue to trade within the channel, offering short-term trading opportunities.

Monitoring volume and key levels (especially 61,758.48 USDT) will be crucial for confirming the next major move.