Products You May Like
- This is a follow-up to yesterday’s Bitcoin technical analysis and trade idea to short BTCUSD at $21300
- A trader taking that ForexLive.com trading idea would be very profitable now. Taking into consideration the leverage in crypto trading, which is typically between 5:1 to 20:1 — as such, the trader would be now with a 20% to 80% profit on the trade
- The question and learning opportunity is to show what that trader would do now, as Bitcoin may decline further to the Point of Control (PoC) shown (red line in the BTCUSD price charts below)
- Does a profitable trade now lower his or her stop loss? Take profit? Take partial profit? See how one needs to connect that decision not just to the Profit and Loss but also to the chart and the technical junction ahead.
- Our price forecast for Bitcoin has not changed since the previous technical analysis but since BTCUSD may find profitable short traders that cover just above $20k, or short term Long traders that enter a Long there, then BTC may be staging a small bounce up, which would probably be temporay before more down. At least to stop out the traders placing their stops below $20k.
- We also note the purple trend line shown in the charts below, as a potential price magnet. When a magnet is below the current price of Bitcoin, it’s a support level where bulls will enter and bears will exit shorts.
The BTCUSD Chart shown in the above video:
Follow ForexLive.com for additional technical analysis where we frequently dish out some creative trade ideas for your consideration. Trade at your own risk.
This article was originally published by Forexlive.com. Read the original article here.