Technical outlook: Bitcoin’s journey towards $40k resistance level

November 12, 2023 10:03 PM AEDT | By Invezz

Technical outlook: Bitcoin’s journey towards $40k resistance level — Image source: Invezz

BTC/USD trading strategy

Buy/sell asset: Buy BTC/USD
Entry price: $3,7185
Stop loss: $3,6272
Leverage: 1x
Take profit 1: $3,8000
Take profit 2: $3,9000
Take profit 3: $4,0000
Timeframe: 1-3 weeks
Maximum profit: 7.5%
Maximum loss: 2.4%

BTC/USD chart and technical analysis

Bitcoin has made a remarkable recovery in the last couple of months. It rose from $25k to $38k in less than two months. The price will possibly continue its rally in the coming days and weeks until it reaches the $40k major resistance level.

I am waiting for the price to close above the $3,7185 minor resistance level and once the price closes above this level I will enter for a long trade. My target for this trade would be the $40k major daily resistance level.

On smaller time-frames i.e. 15 minutes the price is making an inverted head and shoulder pattern which is an indication of the continuation of the bullish trend.

Bitcoin fundamental analysis

Fundamentally, the investor’s confidence is high and the price will potentially continue its rally.

Moreover, the price is likely to follow the technical strategies as there will be fewer high-impact news in the coming week that could impact Bitcoin’s price significantly.

Bitcoin to US dollar trade idea takeaways

Bitcoin is likely to continue its rally according to the technical analysis.
The price will possibly reach the $40k resistance level in the coming days.
Multiple take-profit levels have been added to secure profit along the way.
The risk-to-reward ratio on this trade is 1:3.
The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
Good luck!

The post Technical outlook: Bitcoin's journey towards $40k resistance level appeared first on Invezz

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