BTC/USDT 4H Timeframe Analysis

BTC/USDT 4H Timeframe Analysis

Trend Analysis
On the 4-hour timeframe, BTC/USDT is in an uptrend, having recently broken above the minor key resistance at 99.500, which is now acting as a minor key support. After breaking this level, the price moved towards the next resistance level at 102.300, where large volumes of buyers accumulated.

However, the price then reversed, breaking below the minor key support to hunt for stop-losses, creating a liquidity zone. This marks a phase of manipulation. With liquidity now formed, the price is poised for another breakout to the upside. We expect the price to break above the minor key resistance at 102.700, signaling a continuation of the uptrend.

Price Action Expectation:
Wait for the price to break above the minor key resistance at 102.700 to confirm the continuation of the uptrend.
Plan to enter after the breakout for optimal trade positioning.

Trade Setup

Trade Type: Buy Stop
Entry: 102.700 (upon confirmation of the breakout above resistance)
Stop Loss: 99.400 (below the liquidity zone to avoid false breakouts)
Take Profit: 110.000 (targeting the next significant resistance level)
This setup ensures a strategic approach, leveraging liquidity formation and trend continuation.

Fundamental Outlook:
Bitcoin is holding steady above $104,000, with open interest in BTC surpassing $65 billion. Meanwhile, Donald Trump’s inauguration is scheduled for Monday, and experts argue that this could turn into a pump-and-dump event for crypto. Cryptocurrency expert Frank Chaparro suggests that the crypto community is celebrating Trump’s inauguration as the end of a four-year “harassment” of crypto startups. The market may react to these events, and it's important to monitor the developments surrounding this situation as they could influence Bitcoin’s price movements.

Risk Management:
Maintain a 1:2+ risk-to-reward ratio to optimize potential returns.
Position size should be calculated based on your account equity and risk tolerance.
Closely monitor liquidity zones to avoid premature stop-outs.
Trading involves substantial risks and may not be suitable for all investors. Always seek guidance from a financial professional if you’re unsure about trading decisions.