As Bitcoin (BTC) stays close to its record highs, resellers who want to participate in up trend can face a dilemma: Should they come in now or wait for a more favorable withdrawal?
According to Markus Thielen, founder of 10x research, a withdrawal to the former resistance-facing support level for May High, under $ 112,000, would be the best entry point.
“We prefer to see Bitcoin gene test its $ 111,673 breakout level to give a more favorable risk/reward input,” Thielen said in a note to clients on Monday.
The risk-rewarding relationship compares the potential loss of an investment with its potential profits, which helps dealers determine whether the potential gains justify the associated risks. Dealers are typically targeted at a risk salary ratio of at least 1: 2, which necessitates bullish items close to key support levels, such as $ 111,673 in BTC’s case.
It is common for markets to be revised with the breakout points before staging larger bull runs, which means a potential withdrawal to $ 111,673 cannot be excluded. From writing, BTC traded flattened around $ 119,500 after rising over 1% on Sunday in the middle of reports that the United States had reached the largest trade agreement ever with the European Union.
But what if the meaningful withdrawal doesn’t take place? In this case, the best post would be over $ 120,000 marking a breakout of the trend line connecting July 14 and July 23.
“A break over the falling trendline, especially a sustained step over $ 120,000, could justify re-development with the trend, though it would justify unusually tight stop losses,” Thielen said.
