April 13, 2025 - Complete Analysis of Bitcoin Day Trading Strategy

April 13, 2025 - Complete Analysis of Bitcoin Day Trading Strategy
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1. Support and Resistance Levels Based on Current Price

Current Price: $85,491.00

Key Support:

• $73,777: Recently acted as a rebound level and could serve as strong support in case of a pullback.

Key Resistance:

• $89,000: Expected to act as resistance during a short-term rally.

• $95,000: Considered an upper resistance level if the upward momentum continues.

2. Elliott Wave Analysis

According to Elliott Wave Theory, Bitcoin may currently be in the process of completing the 5th wave.
After a strong rally during the 3rd wave, the current correction phase (Wave 4) seems to be concluding, suggesting a potential rise into Wave 5.
However, caution is advised, as a significant correction often follows the completion of Wave 5.

3. Technical Indicators (RSI, MACD, EMA)

RSI (Relative Strength Index): Approaching neutral levels, indicating a possible easing of the recent short-term downtrend.

MACD: Currently in a neutral zone, waiting for a clear trend reversal signal.

EMA (Exponential Moving Averages):

• EMA(9): The price is above the 9-day EMA, suggesting a short-term uptrend.

• EMA(21) and EMA(50): The price is also above these medium-term EMAs, indicating a medium-term bullish trend.

4. Plan A – Bullish Breakout Strategy

Entry Condition: Break above the $89,000 resistance level with increasing volume.

Strategy:

• Entry Price: $89,500

• Stop Loss: $85,000

• Target Price: $95,000

Risk/Reward Ratio:
(95,000 - 89,500) / (89,500 - 85,000) = 5,500 / 4,500 ≈ 1.22

5. Plan B – Bearish Breakdown Strategy

Entry Condition: Break below the $73,777 support level with increasing volume.

Strategy:

• Entry Price: $73,500

• Stop Loss: $77,000

• Target Price: $68,000

Risk/Reward Ratio:
(73,500 - 68,000) / (77,000 - 73,500) = 5,500 / 3,500 ≈ 1.57

6. Risk/Reward Calculator

Risk/Reward Formula:

• Long Position: (Target Price - Entry Price) / (Entry Price - Stop Loss)

• Short Position: (Entry Price - Target Price) / (Stop Loss - Entry Price)

Use these calculations to evaluate and adjust your trading strategies.

This post is not financial advice. It reflects personal opinions for informational purposes only.
Cryptocurrencies (including Bitcoin) are highly volatile and carry a risk of significant loss.
Please make all investment decisions at your own discretion and responsibility.
All gains and losses are the sole responsibility of the investor.