Technical analysis by elfabiiani about Symbol BTC: Buy recommendation (10/28/2024)

Technical analysis and trade plan by Blaž FabjanSupport and Resistance Levels:Resistance Levels:72,198.87 USDT68,556.87 USDT64,591.15 USDTSupport Levels:66,333.98 USDT61,758.48 USDT60,301.68 USDT56,902.49 USDTThe key levels indicate potential areas where price action could face resistance or find support, which might serve as entry or exit points.Indicators:Wave Cipher Divergences:Wave Cipher shows divergences suggesting a possible upward momentum. Positive divergences with green dots could imply bullish continuation.Relative Strength Index (RSI):RSI currently reads 55.19, indicating a neutral zone, leaning slightly bullish if it moves towards 60. This suggests Bitcoin isn't overbought or oversold and could continue a gradual trend.Stochastic Oscillator:The Stochastic shows a value around 70.52, close to the overbought region (above 80). If it breaks further upward, it may signal an overbought state, potentially leading to a correction.Hull Moving Average (HMA):HMA appears to trend slightly downwards, showing a bearish trend in the short term. The value of -6.58 indicates a bearish momentum, which may warn of a potential short-term pullback before any significant uptrend resumes.Price Action:The chart shows a potential breakout attempt around the 66,333.98 USDT level, where price action previously tested and retraced. A consolidation near this level could suggest that bulls are preparing for an upward push, especially if price breaks above 68,556.87 USDT.Volume Analysis:Volume shows a steady, moderate increase, supporting the upward trend. This moderate volume increase without large spikes could imply gradual accumulation rather than distribution.Trading PlanLong Position (Bullish Scenario)Entry: Consider entering a long position if the price breaks and holds above the 68,556.87 USDT resistance level with volume confirmation.Stop Loss: Set a stop loss slightly below the 66,333.98 USDT support level to mitigate risk in case of a false breakout.Targets:Target 1: 72,198.87 USDT — aligns with a strong resistance level and provides a conservative target.Target 2: 75,553.67 USDT — the next significant resistance level, offering a favorable risk-to-reward ratio.Short Position (Bearish Scenario)Entry: Consider shorting if the price fails to hold above 66,333.98 USDT and shows bearish confirmation, such as a breakdown with high volume.Stop Loss: Set a stop loss above 68,556.87 USDT to avoid risks from potential false breakdowns.Targets:Target 1: 61,758.48 USDT — a nearby support level that provides a logical take-profit point.Target 2: 60,301.68 USDT — serves as a secondary target if the bearish trend strengthens.Risk Management: Given the proximity to resistance and support levels, using a risk/reward ratio of 1:2 or higher is advisable to maintain favorable trade setups.Monitor Divergences: Keep an eye on divergences in the Wave Cipher, RSI, and Stochastic Oscillator for potential trend reversals or continuations.News and Market Sentiment: Be mindful of broader market sentiment and news events, as these can influence Bitcoin's price behavior, particularly near key levels.This trading plan provides a structured approach to capitalize on potential breakouts or breakdowns, balancing both bullish and bearish scenarios.