Bitcoin Technical Analysis – Bullish Momentum Intact?
Bitcoin has shown impressive strength in recent weeks. On the monthly chart, the current candle has a small upper wick, which typically signals positive sentiment and continued upside. This means bulls are in control, and traders may consider holding long positions.
💡 For more on how candle wicks reflect sentiment, check out the strategy guide )
Weekly Chart: Resistance Ahead but Structure is Bullish
Bitcoin (BTC/USD) is currently facing a major resistance zone near $105,000, but the structure remains bullish. Here’s why:
- The last 4 weekly candles have all closed green, starting from the $76,000 level.
- Price is now trading above $100,000, showing no significant pullback since the rally began.
- This week’s candle looks like a pause candle, possibly a spinning top or small-bodied bar.
📈 In such cases, a temporary pause or sideways move is expected, often followed by a continuation of the trend.
Trade Setup Based on Weekly Structure
Here’s how to plan the swing trade:
- Mark the high and low of this week’s candle.
- If BTC breaks the high, it signals bullish continuation.
- Swing targets: $115,000 to $120,000.
- If the low breaks, wait for a proper setup—do not chase.
This is a classic breakout method from pause candles. To understand the spinning top strategy I use, check out the detailed breakdown Spinning top strategy)
Daily Chart: No Clean Setup for Risk-Reward Traders
The daily chart shows no strong setup for traders focused on clear risk-reward ratios. Bitcoin is in a zone of consolidation under major resistance. This means:
- No clean entry for swing traders at the moment.
- Wait for a clear breakout on the daily before entering aggressively.
Intraday/Scalping Setup (For Active Traders)
If you’re a scalper, opportunities still exist:
- Use my 5 EMA setup to catch 1:2 risk-reward trades.
- This works best when you choose your trading session: London, New York, or Asia.
- Set your routine—don’t trade all day in a 24-hour market.
Summary & Trade Plan
- Bias: Bullish
- Weekly breakout above $105,000 opens doors to $115,000+
- No trade on daily unless breakout confirms
- Scalping possible using 5 EMA in selected sessions
Need Help?
If you have questions about this setup or want a second opinion on your chart, feel free to reach out!
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