The last couple of weeks were troublesome for Bitcoin traders and investors. However, BTCUSD seems all set for a big move. Traders need to have a proper trade setup to make use of the volatile movement in BTCUSD.
Since Bitcoin whales are often on the prowl, retail traders mostly lose out on profitable opportunities. The whales sniff out the beneficial strategies and grab them before the retail trader even realizes the potential of a trade.
The Bitcoin market analysis
Bitcoin’s technical analysis reveals that BTCUSD might make a quick move. However, the possibility of a downward movement seems more likely at this moment.
The one-hour timeframe for BTCUSD shows that lately, the volume breakout was higher than the average traded volume in case of a sell-off. It indicates that the sellers are overpowering the buyers in the Bitcoin market.
BTCUSD trade setup through technical analysis
The trendline in the hourly chart shows that the upper trendline was respected on multiple occasions. BTCUSD is currently nearing the converging point of the two trendlines.
The prevailing market sentiment indicates Bitcoin could move down from here. Considering this as the first possible scenario, the first trade setup should be:
- Short BTCUSD as it starts falling below the lower trendline. A ‘trailing stop-loss’ can be set. A manual stop-loss would also work just fine.
- The first target is as ‘Support 1’, which is at $9,350, and the second target is at ‘Support 2’, which is at $9,100.
The second possible scenario is BTCUSD breaking above the upper trendline with good volumes. In that case, the trade setup should be:
- Going long on BTCUSD or directly buying Bitcoin with a short term view.
- The first target, in this case, is at ‘Resistance 1’, which is at $9,500. The second target is at ‘Resistance 2’ and is at $9,850.
The above setups are only for informational purposes. Traders should only execute or place trades after careful consideration of risk and reward!