BTCUSD | Perspective for the new week

27 thg 2, 2022

BTC suffered a plunge to a significant support level at around $34,000 area after news of Russia attacking Ukraine broke out. However, the appearance of a double bottom structure at a significant level of $34,000 incites potential recovery that is due for a relief rally as the Bulls take control with a target at $54,000 area in the meantime.

Tendency: Uptrend (Bullish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom/Breakout)
Observation: i. A visual representation of a trend after connecting a series of prices with a line drawn over pivots highs shows the prevailing direction and speed of price in the last 4 months.
ii. On the 4-hour time frame, It is obvious that the overall momentum of price action has been bearish with the bearish trendline going as far as October 2021.
iii. However, at beginning of this month, we witnessed a breakout of this trendline to signal that the bearish trend might be losing momentum thereby giving way for the bulls to thrive.
iv. $34, 000 level seems to have held price "supported" in the last 34 days to signal a reversal set-up in the form of a Double bottom structure.
v. The appearance of a Double Bottom within the identified Demand zone at $34,000 describes a possible change in trend and a momentum reversal from prior leading price action with confirmation at Breakout of Key level ($45,000) which is also the neckline of the pattern.
vi. From my personal perspective, I will like to join the potential rally early so that I can have opportunities to stack my position if the price moves in the intended direction.
vii. In this regard, I shall be looking to open a position at breakout/retest of $40,000 (identified on the chart with a purple barrier) and anticipate adding to my exiting position at breakout/retest of the neckline of structure at $45,000.
CAUTION: Considering the overall bearish momentum, a breakdown of the demand zone at $34,000 shall render this narrative invalid as I will continue to hold a bullish bias above $40,000... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 12,000 pips.
Risk/Reward: 1:10
Potential Duration: 7 to 20days

NB: This speculation might be considered to make individual decisions on the lower timeframe.

Watch this space for updates as price action is been monitored.


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Past performance is not necessarily indicative of future results.