In a detailed analysis, 360 Elite explored a recent Bitcoin margin trade, offering a comprehensive look at the current market structure and its implications. The video, sponsored by 4C Media Co., provides an in-depth examination of Bitcoin’s performance within a descending channel, marked by multiple touches on resistance and support levels.
Market Structure Insights
Bitcoin is currently navigating a descending channel, characterized by five distinct touches of resistance and a descending support line. Despite some market voices suggesting that Bitcoin has reached its peak, the analysis counters this notion. The well-aligned resistance levels, with each successive high failing to exceed the previous one, suggest that the current structure is not indicative of a cycle top. Instead, it represents a significant accumulation zone with substantial liquidity ranging from $70,000 to $75,000.
Trade Strategy and Execution
Over the past 166 days, 360 Elite has engaged in margin trading within this zone, achieving successful outcomes twice. The trade strategy emphasizes waiting for high-probability setups with minimal risk, particularly in volatile market conditions. The recent trade was based on a detailed analysis of the daily and 4-hour charts, identifying key support and resistance levels.
The trade entry point was strategically chosen at $61,000, following a pullback and liquidity fill, with a subsequent exit at $63,000 due to resistance. This approach allowed 360 Elite to secure profits while adjusting stop losses to mitigate risk. The analysis suggests potential for further gains, with a focus on capturing liquidity and market movement beyond current resistance levels.
Future Outlook
Looking ahead, the analysis indicates that Bitcoin may continue to rise, driven by significant liquidity at higher levels. The potential for further gains is supported by the market structure and the anticipated movement towards higher resistance levels. Traders are advised to monitor the market closely for opportunities to adjust positions and capture additional profits.
