Current Trend: The chart shows a recent downtrend, with the Bitcoin price falling from levels near $98,332 to around $95,000.
Key Support and Resistance Levels:
Resistance 1: $98,332 – This level has acted as resistance, where the price has unsuccessfully attempted to break out on several occasions.
Support 1: $97,729 – A support level where the price has bounced off.
Support 2: $96,167 – Another critical support level, where the price has also shown bounce.
Support 3: $95,002 – The lowest support visible on the chart, where the price has recently bounced off.
Descending Triangle: The chart shows a sideways triangle pattern, which is generally a trend continuation pattern.
Trading Strategy:
Entry at Support: If the price touches the support at $95,002. and shows signs of bouncing (possibly confirmed by an increase in volume or a bullish candlestick pattern), it could be a good entry point for a long position.
Breakout Entry: We expect the price to break the sideways triangle pattern to the downside, this could be a sell signal. An increase in volume at this point would reinforce the signal.
Stop Loss: Place a stop loss just above the highest resistance level at 98.332 to limit losses in case of an upward breakout.
Risk Management:
Risk/Reward Ratio: Make sure the potential reward is greater than the risk taken.
Confirmation: It is always advisable to wait for confirmation through other technical indicators or fundamental analysis before taking a position.