BTC Going towards 123k? 123000 Bullish
2024-07-08

52-48k key support.
worst case scenario is 38k...

1. Market Analysis:

Asset: BTC (Bitcoin)
Timeframe: Daily
Pattern: Cup and Handle formation (potential)
Support Levels: Heavy support between $52,000 and $48,000
Additional Confirmation: Bullish divergence on the daily timeframe
2. Entry Criteria:

Cup and Handle Formation: A cup and handle pattern indicates a continuation of the previous uptrend. The pattern is confirmed once the price breaks above the handle's resistance.
Support Levels: The $52,000 to $48,000 range serves as a strong support zone. Entering the trade near this support zone provides a favorable risk-reward ratio.
Bullish Divergence: The bullish divergence on the daily timeframe suggests potential upward momentum.
3. Trade Setup:

Entry Point: Place a buy limit order in the $52,000 to $48,000 support zone. Alternatively, wait for a bullish confirmation signal (e.g., a bullish candlestick pattern) within this zone.

Stop-Loss: Set the stop-loss order below the $48,000 support level to limit potential losses if the price unexpectedly breaks down further. Ensure that the stop-loss level is at a logical level to avoid being stopped out by normal market fluctuations.

Take-Profit: Determine your take-profit target based on the projected move following the cup and handle pattern. The target can be set at $123,000, as per the anticipated move. Consider scaling out of the position as the price approaches key resistance levels or intermediate targets.

4. Risk Management:

Position Size: Calculate your position size based on your risk tolerance and the distance between your entry point and stop-loss level. Ensure that you only risk a predetermined percentage of your trading capital per trade (e.g., 1-2%).

Risk-Reward Ratio: Aim for a favorable risk-reward ratio, ideally at least 1:3 or higher. Given the potential for a significant upside move, a higher risk-reward ratio is desirable.

5. Additional Confirmation:

Volume Analysis: Check for an increase in volume to confirm the validity of the bullish divergence and the potential for a strong upward move.
Support and Resistance: Ensure that the trade aligns with key support and resistance levels on higher timeframes (e.g., weekly).
6. Trade Execution: