BTCUSD had a nice rally above 3% yesterday but the volume is not strong and bitcoin can easily test the 20k mark or approach it. We are aiming for a short position with a “take profit” target which is the test of a large VWAP and well above that key price point of $20,000. In fact, we aim to take profit and exit the trade even above 21,000, at $21,421.
Yet, in crypto trading, this exceeds 7.5% movement, and with leverage of 5 to 1, this represents a return of nearly 40% on capital committed to the trade. Remember that we are not suggesting or telling you to trade, nor is this a reporting service. This is an opinion and through this perspective we also show a view of the current technical analysis for bitcoin. In this case, on the daily schedule. In other words, our trade idea is a way to show you some technical analysis. Trade at your own risk.
In this specific technical analysis for the King of Crypto, VWAP has been modified to make Docked VWAP. It ties the calculations to a price bar that the trader has chosen. It is like traditional VWAP in that it uses a weighted average of price and number of transactions. It can also find the support and resistance areas on the chart, just like VWAP. In this case, we are anchoring VWAP from the pivot point and the recent low of 17567, the June 18th low.
BTCUSD had made 4 surges since that low, creating what some algos and professional traders would consider rising corner. A the rising wedge pattern is a bearish chart pattern that shows a breakout is imminentin probability This is greater than 50%. This is luck enough considering that the profit target here is 1.5 times the risk (the distance between the entry and the stop loss).
Who knows, maybe it bitcoin price prediction is partially affected by a bias as every US crypto exchange (and Binance) is under investigation by the SEC.
Trade bitcoins or any other crypto at your own risk. Visit our technical analysis for other views on a variety of assets.