Bitcoin hits major level 10200 for a low risk high reward probability.
Bitcoin daily chart showcasing the importance of 10200
- Price at Fibonacci 61.8% level (June low to August high range)
- RSI breaks above oversold 20
- RSI breaks above trend
- Price sold off rapidly and finds support at 100% – 123.6% Fibonacci Extension
- Waiting for bullish candle stick for entry.
Support – 10200, 10000
Resistance – 11100, 200 EMA, 50 EMA, 11900, 12500
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 10200
Supporting Entry – 10400
Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 10,000 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 10200 – Target 1 11100 = 2.2 x Reward to Risk
Optimal Entry 10200– Target 2 11900= 4x Reward to Risk
Optimal Entry 10200– Target 3 12500 = 5.5x Reward to Risk
Supporting Entry 10400 – Target 1 11100 = 1x Reward to Risk
Supporting Entry 10400 – Target 2 11900 = 2.5x Reward to Risk
Supporting Entry 10400 – Target 3 12500 = 3.2 Reward to Risk