The Bitcoin price is still ranging on the 4-hour timeframe. And right now, Bitcoin is testing the $43,408 resistance. If this resistance holds, we can expect the Bitcoin price to sell off from that region soon.
This provides us with a very high-quality sell trade we can take advantage of on the lower timeframes. And in this Bitcoin analysis, we will be breaking down how we came about this potential sell trade, key levels to watch and the best targets to aim for in the coming days.
Key Level Holding Strong
On the 30 min timeframe, we can clearly see the Bitcoin price has attempted to break out multiple times and failed. This points that the $43,408 resistance is being respected and Bitcoin might not just be ready to break out of this ranging market just yet.
But for this bearish bias to be confirmed, we need to see the Bitcoin price break below the $39,035 mini support. This mini support has held the Bitcoin price on numerous occasions and might continue to do so. But a break below it would signify that the sell-off has started and we can then jump into the trade.
Converging Triangle Pattern On The 15 min Timeframe
If we take another step lower to the 15 min timeframe, we see Bitcoin is currently forming a converging triangle pattern.
This pattern confirms our bias that Bitcoin is about to make a move soon. The pattern also helps us better time the market, our trade entries, and our bearish target.
For the converging triangle pattern on the 15 min timeframe, our bearish target is the $35,481 price region. We also saw price bounce around this price region earlier on.
However, there is also a very high probability that Bitcoin might actually crash back down all the way to the $28k support again. So the best way to take advantage of this two bearish targets would be to
- Take part of your profits at the $35,481 price region,
- Move your stoploss to break even
- And let the rest of the position run to the $28k support region
It is important to wait for a price break and close below the $39,035 support before entering any trade. However, this bearish trade setup becomes invalidated if Bitcoin breaks above the converging trangle.
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