Today we’re going to analyze the technical situation around the Bitcoin’s upward trend.
In particular, we will interpret the SIGNALS being generated by the primary technical indicators and will identify the next price target for Bitcoin.
Interested? Continue reading this analysis from Monfex, a revolutionary cryptocurrency exchange, and you’ll receive exact instructions on how to trade Bitcoin and generate profits!
- The medium-term trend for Bitcoin remains UPWARDS.
- The next month’s forecast is in a range of $10,500-11,500.
- Over the short-term (next two weeks), though, the flat trend is more likely, as the price corrects downwards from local highs and forms a new basis for the next wave upwards to $11,500.
Detailed Analysis For Professional Traders
The medium-term trend for Bitcoin is strongly upwards, which is indicated by technical indicators, chart patterns and fundamental analysis.
A 20-days is increasing and the Bitcoin price is above the (20).
There is an ascending trend channel being formed on the Bitcoin’s , which is a strong continuation chart pattern.
The price is perfectly confined within the of this channel, and the next implied price target is located at $11,500.
So, for long positions, the take-profit target should be set at $11,500.
The two intermediate price targets are located at significant resistance levels at $8,500 and $9,500.
A positive dynamics in fundamental variables of the Bitcoin network, such as continuing growth in the number of daily transactions and the number of active wallets, reinforces and confirms an upward trend forecast for the Bitcoin’s market price.
Why Is The Price Adjusting Downwards?
As we’ve been describing in our previous trade idea, the Bitcoin price has deviated substantially upwards from its mean value.
Currently, the mean value, as measured by a 20-days moving average and a channel, is estimated in a range $7,000-7,500.
Therefore, what we’re seeing now is a ‘healthy’ short-term correction in a bull market.
We don’t expect it to move below the nearest significant at $6,500, which coincides with the lower of an ascending trend channel.
So, technically, the trend is upwards and there are no indications of a possible trend reversal now.
We consider a price range between $7,100-$7,400 as attractive to enter long (buy) Bitcoin in anticipation of the beginning of the next bull wave to $11,500. Here is an active trade signal:
- Buy Bitcoin in at $7,400
- Take-Profit: $11,500 - the 2nd significant
- Stop-Loss: $6,700 - the next significant
- Forecasted P&L: +$4,100 or +55%, equivalent to +$41,000 or +550% with 10x Leverage at Monfex
- Risk/Reward Ratio: 5.9x
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To your trading success,
This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.