Bitcoin: Double Bottom Long To 64K.
Bitcoin is the most traded cryptocurrency globally, holding the largest share of the crypto market. As the first digital coin, it remains the most renowned and widely-adopted cryptocurrency. Bitcoin is the pioneer, setting the standard for all subsequent cryptocurrencies. Its creation marked the inception of a new asset class and a significant departure from traditional, centrally controlled currencies. Many advocates today believe Bitcoin will drive the next evolution of the global financial system, though this remains to be seen.
Bitcoin has confirmed a double bottom within the 60K major support area, reinforcing the scenario outlined in my previous analysis (see chart illustration). An inside bar is present on this timeframe, along with a break of the high of that candle, triggering a new buy signal. This could lead to a test of the 64K resistance over the next week or two.
A critical question to address is the risk associated with this long setup. Risk can be measured in various ways. A simple and more conservative approach is to note the most recent low, around the 59K area. Entering a long position now or from the low 61Ks places the associated risk at approximately 2K points on this timeframe. Considering the potential reward around 64K, the risk-to-reward (R:R) ratio is about 2:1, making this opportunity attractive for swing traders and investors.
However, it’s essential to understand that a buy signal, even when my criteria are met, does not guarantee a positive outcome. While I believe there is a higher probability based on my experience, probability also means there is a chance the market could move in the opposite direction. Therefore, risk management is crucial to effective decision-making, not just focusing on high win rates. As I regularly remind my followers, unexpected news can surface, potentially pushing Bitcoin to 56K within hours.
Another caution is to avoid getting caught up in the hype of “rocket ship” talk, such as claims that Bitcoin will hit 100K by tomorrow and that you’ll miss out if you don’t act immediately. If you follow people who promote fear of missing out (FOMO) messages, it’s wise to stop following them. Bitcoin has been in consolidation since the March peak, providing numerous opportunities on both sides of the market. There’s no reason to feel like you’re missing out, especially when you have a tool like my Trade Scanner Pro to help you identify opportunities, clarify risk, and measure profit potential.
Without a rational decision-making framework, you become vulnerable to emotions of greed and fear. This vulnerability can lead to exploitation by “experts” you trust and to making irrational, high-risk decisions, such as buying when the market appears to be at its peak.
