Bitcoin has been on a wild ride since its release in 2009. It’s currently hovering around $48,040.79 USD as of this writing. Regardless of what people say about Bitcoin being dead or dying, many see the cryptocurrency as their opportunity to amass wealth without being subject to the whims of banks and governments.
With Bitcoin’s price action, there is a chance for Bitcoin to rally more than 30%. The bull market will resume today if there is a bullish reversal up ahead. The short squeeze ahead will be large.
In yesterday’s candlestick, there were many new short positions that were opened, and those new short sellers are likely feeling the pressure as bitcoin prices rise.
Bitcoin price to explode close to its all-time highs
This entry is based on a Point and Figure pattern known as a Pole Pattern that is not present on the candlestick chart. The entry is based on an earlier entry based on a slight deviation from the Pole Pattern.
According to the long setup for Bitcoin price, the buy stop is currently located on the 3-box reversal, currently at $48,500. The stop loss is located on the 4-box reversal, currently at $46,500, and the profit target is $63,000.
Basically, this Point and Figure pattern suggests lower prices as well as a lower buy stop. Thus, the stop loss remains a 4-box stop, and the profit target, calculated using the Vertical Profit Target Method, remains $63,000.
With an implied profit target of 30% above the entry, this trade represents a 7.25:1 reward for the risk setup. Two to three boxes of trailing stops would help protect any profit generated after the entry is triggered.
Traders should expect some resistance at $55,000 range before further upside momentum can be expected for Bitcoin price. Since this long setup is based on the pole pattern setup, there is no invalidation point. As Bitcoin price drops, so does the entry.
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Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
