The BTCUSD weekly candle closed with a strong bullish pattern, indicating robust bullish momentum in the Bitcoin market. This suggests buyers are in control, setting a positive tone for the upcoming week. As the monthly close approaches, the market favors a buy-only strategy. Selling is not advisable, as historical trends show Bitcoin often recovers quickly from dips during bullish phases as per my Bitcoin Weekly Analysis.
Daily Chart Analysis: Flag and Pole Pattern
On the daily chart, a flag and pole pattern has emerged, a reliable bullish continuation signal. If Bitcoin breaks above $95,000, it’s a clear buy signal. Traders should enter a long position with a stop loss (SL) of 200-300 points below the entry to manage risk. The target for this trade is 1,200-1,500 points above the breakout, aiming for significant gains.
Trading Plan for the Upcoming Bitcoin Weekly Analysis
- Entry: Buy Bitcoin if it crosses $95,000 on the daily chart, confirming the flag and pole breakout.
- Stop Loss: Set SL at 200-300 points below entry to protect against volatility.
- Target: Aim for $96,200-$96,500, a 1,200-1,500-point move from the breakout level.
- Avoid Selling: With the bullish trend intact, avoid shorting, as dips are likely to recover fast.
Why Buy Bitcoin Now?
The combination of a strong bullish weekly candle and a flag and pole pattern on the daily chart makes Bitcoin a compelling buy above $95,000. This setup aligns with the broader bullish sentiment, especially as the monthly close nears. Traders should watch for a confirmed breakout and manage risk with a tight stop loss to capitalize on Bitcoin’s potential upside.