Here is your Bitcoin Trend Analysis - the ultimate source of market ideas and trade signals, brought to you by Monfex, that will make you a winning trader.
It’s important to emphasize that the current downward move we’re seeing right now is a corrective wave within an upwards trend, and not a trend reversal.
In case of Bitcoin, a hypothetical decline below a significant support at $7,500 would send a strong signal of a possible trend reversal. The retracement we’re observing now is a ‘market noise’ - meaning, it is a short-term trading volatility that does not alter the long-term trend for Bitcoin.
In bull markets, corrective waves occur regularly, since any price trend, by definition, consists of a series of waves and counter-waves.
Both technical and fundamental approaches to market analysis indicate a positive long-term outlook for Bitcoin . Currently, the price is adjusting downwards closer to its mean value (i.e. central tendency), which creates a good opportunity to buy Bitcoinwith a ‘tight’ stop-loss, thus ensuring an attractive risk/reward ratio.
The fundamentals of the Bitcoinnetwork are improving every month - we are seeing increasingly higher numbers of Bitcoinactive wallets, Bitcoin daily transactions, and Bitcoinhash rates, all of which indicate an increasing demand for Bitcoin. For example, an increase in the number of Bitcoin active addresses used is associated, by definition, with an increase in global adoption and use of Bitcoin. This translates into increased demand for Bitcoin, which leads to an increase in Bitcoinmarket price. Since the trend of improving fundamentals continues upwards, we’re expecting to see further price increases of Bitcoin .
Active Trade Signal:
- Buy at $10,000
- Take-profit at $15,000
- Stop-loss at $8,000
- Forecasted P&L: $50,000 per 1 lot with 10x leverage
- Risk/reward ratio: 1:2.5 (very attractive)
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