Update for this BTCUSD technical analysis, 04 June 2023, the KING IS SUSTAINING

  • Sustained Bitcoin price action in the defined channel between $26,000 and $28,300, indicating a strong mid-range presence.
  • Prices are holding above the anchored view up, suggesting bullish signs especially after the recent bearish fall-off.
  • The volume profile showcases POC at approximately $26,925; as long as we stay above this, the market remains in a bullish state.
  • Potential price targets range from $27,436, up to a high of $27,731, offering enticing opportunities for long positions.
  • Smart risk management strategies are highlighted, such as setting stops below significant lows and considering risk-to-reward ratios for optimal trade setup.

Previous update for this BTCUSD technical analysis on 31 May

In the latest update on BTCUSD (1:01, Wednesday, 31 May 2023, Eastern Time (ET)), currently trading at approximately $27350, the bulls

are looking for two consecutive 4-hour candles to close above the purple line. This is crucial for them to maintain their upward momentum. On the other hand, the bears
are hoping for the price to close below the 27250 support area for two consecutive 4-hour candles, as this would give them an advantage and potentially lead to a downward trend. It's worth noting that the bears have recently gained momentum, supported by the decline in Nasdaq futures.

Bitcoin is coming to the apex of this triangle.
Bitcoin is coming to the apex of this triangle.

Volume profile since the start of the year shows ES is going back into the value area

Furthermore, it is important to emphasize the significance of the Value Area High (VAH), here at apx 4208.50. THIS IS INTERESTING SINCE ES TENDS TO CORRELATE WITH BITCOIN. The volume profile analysis reveals that the ES (E-mini S&P 500 futures) is retracing back into the value area, as shown in the chart below taken from TradingView, where you can check out other bitcoin technical analysis. This suggests that the market is gravitating towards a price range that has witnessed substantial trading activity. The VAH serves as a key reference point for market participants, indicating an area of notable interest.

ES seems to be re-entering the value area of this year's volume profile
ES re-entering value area of this year's volume profile

The latest bitcoin technical analysis video with a couple of trade ideas for your consideration

Are you ready to delve into the world of Bitcoin trading? In this Bitcoin technical analysis and trade idea for May 29, 2023, I will provide you with valuable insights into the current market conditions. By exploring the upward channel and volume profile, we will help you identify potential entry and exit points for your trades. Stay informed and make educated decisions with the latest updates from ForexLive.com.

Bitcoin (BTC) has shown promising signs as it pushes upwards, and it's essential to consider its correlation with NASDAQ and S&P 500 futures. These assets often influence BTC's performance, so monitoring their trends can provide valuable clues. Currently, both NASDAQ futures and S&P 500 futures are performing well, indicating a potentially open bullish gate for BTC-USD.

BTC looks bullish but where can I enter?

So, where should you enter the market? One option is to consider the 20 EMA (Exponential Moving Average) on the daily timeframe. At the moment, the 20 EMA is located at 27,296. Placing a long position near this level could be a strategic move. To manage risk effectively, set your stop-loss below the value area low, which is around 24,800. By doing so, you can limit potential losses.

Suppose you are comfortable trading with low leverage. In that case, you may consider aiming for the top of the channel, which currently sits near 35,000. However, keep in mind that higher leverage entails greater risk, and it may not be wise to risk more than ten percent of your capital. Adjust your position size accordingly to align with your risk appetite. Check out the video for the Long trade ideas showing this.

Alternatively, you can set your stop-loss if the price crosses down the channel. This approach reduces risk and offers a potential reward-to-risk ratio of 7.19 to 1. With this strategy, you aim for the significant 35,000 price level, providing an attractive reward. Partial profit-taking near the 30,000 mark, indicated by a previous high, could be a prudent move while still keeping a portion of your position open.

For those willing to take more frequent trades, exploring lower time frames could be an option. However, be aware that this approach may increase the likelihood of being shaken out of the trade. By setting your stop-loss just below the green trend line on a lower time frame, you can have a closer stop. If you return to the daily timeframe, your risk will decrease to 2.19 percent, while the potential reward-to-risk ratio remains nearly 5 to 1. Consider taking partial profits around 30,000 to lock in gains.

Remember, these strategies provide guidance and orientation. Depending on your risk tolerance and trading style, you may choose to adapt and adjust your approach accordingly. It's crucial to stay updated with market developments, so regularly check ForexLive.com for additional comments, perspectives, and possible updates in the comment section.

In summary, Bitcoin appears to have a bullish outlook as long as it remains within the upward channel presented in the above technical analysis video. However, a bearish premise may develop if BTC crosses down and closes two consecutive daily candles below the value area high of 24,750. In such a scenario, a potential visit to the point of control near 16,750 USD cannot be ruled out. Stay informed and make wise trading decisions based on reliable information.

Have a fantastic week, and don't forget to stay tuned to ForexLive.com for more insights and updates on the exciting world of Bitcoin trading