As Bitcoin (BTC) is close to its record summits, traders who seek to join the upward trend can be confronted with a dilemma: should they enter now or wait a more favorable withdrawal?
According to Markus Thielen, founder of 10x Research, a decline in the old level of resistance resistance from the top of May, less than $ 112,000, is the best entry point.
“We would prefer to see Bitcoin rewards its $ 111,673 escape level to provide a more favorable risk / reward point,” Thielen told customers on Monday.
The Risk-Recompénse ratio compares the potential loss of an investment in its potential benefit, helping the traders to determine if the potential gains justify the associated risks. Traders generally target a risk-reversed ratio of at least 1: 2, requiring bullish entries close to key support levels, such as $ 111,673 in the case of the BTC.
It is common for the markets to revisit the escape points before staging larger races, which means that a potential withdrawal at $ 111,673 cannot be excluded. During the editorial staff, BTC exchanged flat at around $ 119,500, having increased more than 1% on Sunday in the midst of reports according to which the United States had concluded the most important trade agreement with the European Union.
But what happens if the significant removal does not take place? In this case, the best entry would be more than $ 120,000, marking an escape above the trend line connecting on July 14 and July 23.
“A break above the descending trend line, in particular a decision supported above $ 120,000, could justify the re-engagement with the trend, although it justifies unusually tight stop-loss,” said Thielen.
