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.
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!