Welcome to the first episode of the Market Analysis by UpBots!
Let’s look at what the market might have in store for us, shall we?
If we take a look at the chart of BTC dominance, we see that it is on a very important support level.
Bitcoin is also on an extremely important support zone and it is this convergence between price and dominance that gives us a higher probability of a bounce.
Be careful though, this doesn’t mean you should buy right away. Indeed, if we buy now we have to put our stop-loss under USD 37,500. However, our target is around USD 47,000 which would give us a maximum Risk-Reward ratio of 1.5.
We can on the other hand open a short position on retracement towards 47,000 USD. BTC has failed to register a lower low from a macro perspective, but the current short-medium term trend remains negative until proven otherwise.
So, what have we learned?
- At the moment the market is on a support zone with a possibility of rebound.
- This does not allow us to open a long position given the risk/reward ratio.
- We will rather open a short position on a retest at 47,000 USD.
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We will change our bias from short to long if BTC manages to exceed 49,000 USD.
That’s it for today, take care and see you next week!
