Namaskar LuckySevenTrader Community:
No one can predict the market with certainty—whether it will pump or dump—but technical analysis can provide insights and help traders make informed decisions. In this weekly timeframe analysis of #Bitcoin❗ , we observe some key patterns and levels that suggest a potential shorting opportunity.
Overview of the Weekly Timeframe
After #Bitcoin❗ reached its all-time high around $72,000, it faced rejection and has since been moving up and down, forming a major descending trendline. This trendline has acted as a significant resistance level, with Bitcoin testing it multiple times and facing rejections, as indicated by the red down arrows in the chart.
Currently, Bitcoin is sitting at this Major Descending Trendline at $67,000, which is a known resistance zone. With two days remaining until the weekly close, we can already see a wick forming—a sign of rejection from this resistance level. Given this, the probability of a successful short trade at resistance seems higher than longing. Therefore, I prefer to Short Bitcoin as a swing trade.
Confirmation on the Daily Timeframe
To confirm this Shorting opportunity, we switch to the Daily Timeframe. At this level, Bitcoin is showing signs of rejection at the resistance zone, and we observe the formation of red candles. However, for a more reliable entry, we should look for the formation of a bearish structure or pattern, such as:
Bearish Engulfing Candlestick
Double Top Formation
Head and Shoulders Pattern
These patterns would provide confirmation for a high-probability short setup. If the price does indeed move downward, it could reach the $52,000 - $50,000 range, which is a high-demand zone and a logical support level.
Trade Setup Details
Entry Position: Around $66,800
Stop Loss: Set at $69,000 to manage risk
Take Profit: Targeted at $52,000, aligning with a high-demand zone
Risk-to-Reward Ratio: This setup offers a 1:7 risk-to-reward ratio, which is an excellent opportunity for traders looking to capitalize on this potential move.
Final Thoughts
This analysis is based purely on technical analysis, using historical price patterns and key levels. It’s important to note that prices can also be influenced by fundamental news and reports, which are outside the scope of this discussion. If you are considering shorting Bitcoin, I believe this could be the right time, but always wait for confirmation on lower timeframes to ensure a high-probability setup.
If you are ready to take action, press the BTC button below and jump into the trade. Remember, always manage your risk and trade carefully!
