The main view of this trade idea is on the 4-Hour Chart. Bitcoin ( BTC ) began trading in a rangebound or rectangular pattern since August 13th, with the range being 43500 at the lower end and 48250 at the upper end. BTC appears to be breaking out of the range, with the target price move being the width of the chart pattern. This will take the cryptocurrency towards 52500.
Technical Indicators
BTC has been trending higher over the last couple of months, being above its short (25-MA), medium (75-MA) and long (200-MA) fractal moving averages for the most part. The recent consolidation in the price has built up enough momentum for the cryptocurrency to proceed higher. The RSI is above 50 and moving higher while the KST recently had a positive crossover from 5 bars ago at the time of publishing. Furthermore, over multiple timeframes, other technical indicators have be exhibiting buy signals on the cryptocurrency.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 42400 price level and a target of 52500. This produces a risk-reward ratio of 0.62. Given the low risk reward ratio, a small position size should be utilized.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Bitcoin .
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