Bitcoin technical analysis & trade idea

BTCUSD had a nice rally above 3% yesterday but volume is not strong and bitcoin can easily test the 20k mark or close to it. We aim for a short position with a ‘take profit’ target that is in line with testing an important VWAP, and is much higher than that 20 thousand dollar key prioce point. In fact, we aim to take profit and exit the trade even above 21k, at $21421

Still, in crypto trading, this is above 7.5% move, and at a leverage of 5 to 1, this is almost a 40% return on the capital committed on the trade. Remember that we are not suggested or telling you to trade, nor is this a signal service. It is an opinion and through that persepctive, we also show a view of the current technical analysis for bitcoin. In this case, on the daily timeframe. In other words, our trade idea is a means to show you a certain technical analysis. Trade at your own risk.

In this specific technical analysis for the crypto king, VWAP has been changed to make Anchored VWAP. It ties calculations to a price bar that the trader has chosen. It is like the traditional VWAP in that it uses a weighted average of the price and the number of trades. It can also find the areas of support and resistance on the chart, just like VWAP. In this case, we anchor the VWAP from the pivot point and the low of the recent period, which is 17567, the low of 18th of June.

BTCUSD had made 4 pushes up since that low, creating what some algos and pro traders would view as ascending wedge. A rising wedge pattern is a bearish chart pattern that shows a break down is coming soon, in probability that is higher than 50%. That is a a suffient chance when taking into consideration that the profit target here is 1.5 times the risk (the distance from the entry to the stop loss).

Who knows, maybe this bitcoin price forecast is partially affected by a bias becuase every U.S. Crypto Exchange (and Binance) is being investigated by the SEC.

Trade bitcoin or any other crypto at your own risk only. Visit our technical analysis for other persepctives on a variety of assets.