After a sharp fall on August 21st, we have finally reached our support line

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Trend Analysis

After a sharp fall on August 21st, we have finally reached our support line. After a bounce off the support line, we are starting to see some nice green candles which may indicate a new trend forming. 

If the price doesn't break through the support of about ~$9,700  then we could expect a new upward trend to form heading to the next resistance of ~$10,500.  

Technical Notes

The stochastic oscillator is showing that we are in the oversold range, but there is some steady momentum heading out of that range. With the Stoch showing a recently recorded higher low while the price of Bitcoin recorded a lower low, this could indicate a bullish divergence and therefore a price increase. 

What To Consider

Be cautious when placing an order because if the price breaks below ~$9,700 we could be heading to the next support of ~$9,400. If the price is holding above the support of ~$9,700 we could expect an increase to the next resistance of ~$10,500. 

Active Trade Signal

- Buy at $9,900 

- Stop-loss at $9,700 

- Take-profit at $10,400 

- Risk/reward ratio: 1:2 (attractive) 

Disclaimer 

 

This report is for information purposes only and should not be considered a solicitation to buy or sell any cryptocurrency or cryptocurrency product. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.