Bitcoin (BTC/USDT) 4h timeframe TA+Trade plan by BF
Descending Broadening Wedge
Pattern Description: This is a bullish reversal pattern. As shown, the price of Bitcoin is testing the support line of the wedge, which typically suggests that a breakout to the upside might occur after the completion of the pattern.
Potential Breakout: The chart indicates a potential breakout above the upper boundary (resistance line) of the wedge, possibly signaling the beginning of an upward move.
Key Support and Resistance Levels
Support Levels:
60,301.68 USDT: This is a near-term support zone where price could find buyers if it revisits these levels.
53,988.89 USDT: A deeper support level shown on the chart, which might come into play if Bitcoin faces a significant sell-off.
Resistance Levels:
64,591.15 USDT: A strong resistance zone that Bitcoin would need to surpass for a sustained upward move.
68,556.87 USDT: A higher resistance level that could become the target in the case of a breakout.
Indicators Analysis
VMC Cipher B Divergences: It appears to show divergence. A green dot below indicates potential bullish divergence, suggesting price may increase soon.
RSI (Relative Strength Index): The RSI is at 31.48, which indicates oversold conditions. This level usually implies that the asset is undervalued, signaling a potential buying opportunity.
Stochastic Oscillator: The stochastic reading is at 23.61 (blue line) and 20.43 (red line), indicating oversold conditions as well. This adds further strength to the bullish argument, aligning with the RSI's signals.
HMA (Hull Moving Average): The HMA histogram shows green bars, suggesting a bullish trend might be forming or momentum is starting to shift to the upside.
Trading Plan
Long Position Setup
Entry:
A breakout above the resistance line of the descending broadening wedge would be the ideal entry signal. You may consider entering around 61,750–62,000 USDT.
Take Profit:
First take-profit target could be around 64,591 USDT (resistance zone).
If momentum is strong, a secondary target can be set around 68,556 USDT.
Stop Loss:
Place a stop loss just below the recent low at 60,000 USDT, as a break below this level would invalidate the bullish wedge pattern and signal further downside.
Alternative (Cautious) Approach
Wait for confirmation of a breakout with a strong candle close above the wedge's resistance line, paired with bullish indicators on lower timeframes (e.g., 1-hour chart).
Risk Management:
Risk no more than 1-2% of your portfolio on this trade, adjusting position size accordingly.
Final Considerations
Monitor for any false breakouts as Bitcoin could retest the wedge's resistance line before confirming the breakout.
Keep an eye on volume; a breakout with strong volume increases the likelihood of the wedge pattern playing out successfully.
Pattern Description: This is a bullish reversal pattern. As shown, the price of Bitcoin is testing the support line of the wedge, which typically suggests that a breakout to the upside might occur after the completion of the pattern.
Potential Breakout: The chart indicates a potential breakout above the upper boundary (resistance line) of the wedge, possibly signaling the beginning of an upward move.
Key Support and Resistance Levels
Support Levels:
60,301.68 USDT: This is a near-term support zone where price could find buyers if it revisits these levels.
53,988.89 USDT: A deeper support level shown on the chart, which might come into play if Bitcoin faces a significant sell-off.
Resistance Levels:
64,591.15 USDT: A strong resistance zone that Bitcoin would need to surpass for a sustained upward move.
68,556.87 USDT: A higher resistance level that could become the target in the case of a breakout.
Indicators Analysis
VMC Cipher B Divergences: It appears to show divergence. A green dot below indicates potential bullish divergence, suggesting price may increase soon.
RSI (Relative Strength Index): The RSI is at 31.48, which indicates oversold conditions. This level usually implies that the asset is undervalued, signaling a potential buying opportunity.
Stochastic Oscillator: The stochastic reading is at 23.61 (blue line) and 20.43 (red line), indicating oversold conditions as well. This adds further strength to the bullish argument, aligning with the RSI's signals.
HMA (Hull Moving Average): The HMA histogram shows green bars, suggesting a bullish trend might be forming or momentum is starting to shift to the upside.
Trading Plan
Long Position Setup
Entry:
A breakout above the resistance line of the descending broadening wedge would be the ideal entry signal. You may consider entering around 61,750–62,000 USDT.
Take Profit:
First take-profit target could be around 64,591 USDT (resistance zone).
If momentum is strong, a secondary target can be set around 68,556 USDT.
Stop Loss:
Place a stop loss just below the recent low at 60,000 USDT, as a break below this level would invalidate the bullish wedge pattern and signal further downside.
Alternative (Cautious) Approach
Wait for confirmation of a breakout with a strong candle close above the wedge's resistance line, paired with bullish indicators on lower timeframes (e.g., 1-hour chart).
Risk Management:
Risk no more than 1-2% of your portfolio on this trade, adjusting position size accordingly.
Final Considerations
Monitor for any false breakouts as Bitcoin could retest the wedge's resistance line before confirming the breakout.
Keep an eye on volume; a breakout with strong volume increases the likelihood of the wedge pattern playing out successfully.
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