Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chart Of The Day: Bitcoin Setting Up For A Slip

By Investing.com (Pinchas Cohen/Investing.com)CryptocurrencyOct 25, 2021 14:39
uk.investing.com/analysis/chart-of-the-day-bitcoin-setting-up-for-a-slip-200500559
Chart Of The Day: Bitcoin Setting Up For A Slip
By Investing.com (Pinchas Cohen/Investing.com)   |  Oct 25, 2021 14:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The bulls' ability on Sunday to catch Bitcoin at the $60,000 level, then push it back above $62,000, may help embolden an increase in long positions on the cryptocurrency. Indeed, many investors are now asking when the leading digital token will finally make it to $100,000.

The launch of two Bitcoin futures ETFs last week to much fanfare—the ProShares Bitcoin Strategy Fund (NYSE:BITO) and the Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF)—has fueled the underlying cryptocurrency's rise. Open interest on CME Bitcoin futures has surged as well, to number 1 globally in some places in just days, leading Charles Edwards, CEO of investment firm Capriole to extrapolate that there's "massive institutional interest."

However, technicals are signaling that Bitcoin could be about to take a break from its blistering rally.

BTC/USD Daily
BTC/USD Daily

The digital token has fallen out of its rising channel and has been developing a potential small H&S top.

The MACD's short MA crossed below the long one, weakening in more recent price comparisons. Both the RSI and ROC—two momentum-based indicators but with different calculations—are bearish.

The RSI completed a small H&S ahead of the price and has been dropping within its falling channel ever since. The RSI just topped out.

To clarify, we will call it a reversal only after the price falls below the neckline. Alternatively, if the price blows out the would-be bearish pattern, it would turn bullish, propelling the cryptocurrency to new heights.

Trading Strategies

Conservative traders should wait for the price to fall below $55K, then rally, but find resistance before risking a short position.

Moderate traders would be content with a close below $58,000 and a return move for a closer entry.

Aggressive traders could short at will, provided they accept the greater risk that is proportionate to the higher reward they seek by moving before confirmation. The more aggressive the trading strategy, the more critical money management becomes. Here's an example of a trading plan:

Trade Sample

  • Entry: $63,000
  • Stop-Loss: $64,000
  • Risk: $1,000
  • Target: $60,000
  • Reward: $3,000
  • Risk:Reward Ratio: 1:3
Chart Of The Day: Bitcoin Setting Up For A Slip
 

Related Articles

Chart Of The Day: Bitcoin Setting Up For A Slip

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Brian Lelei
Brian Lelei Oct 26, 2021 14:00
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pinchas call me true this number +254721970421
Melvin Lim
Melvin Lim Oct 25, 2021 19:31
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol
Edvard Võrk
Edvard Võrk Oct 25, 2021 18:07
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Did you put this trade in?
Kim David
Kim David Oct 25, 2021 18:07
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email