- Greetings to traders. Welcome to bappy4x’s trading journal, and I hope you have enjoyed last week’s trading. Although I don’t have enough capital to trade, and that’s the reason I have been practicing with a demo account for a couple of weeks. However, the weekend has already started, and this is the time to concentrate on cryptocurrency trading. In contrast, in the last couple of weeks, I was not able to gain a single profit from cryptocurrency during the weekend. In the meantime, the price of Bitcoin made a massive bearish breakdown last week, and the price of Bitcoin reached below $40,000. Despite reaching a multi-week low of $39,500, the price of Bitcoin has been hovering in the bullish zone. As of writing, the price of Bitcoin is trading around the $42,500 price mark.
Closed Trades Update:
- A day before, I executed some buy orders for the GBP/USD and EUR/USD currency pairs while the price of the US Dollar Index was moving towards the bearish region. Both pair prices were trending in the bullish area, and I set the take-profit levels at the instance for all trades.
- Because of the weakening of the US Dollar Index, EUR/USD and GBP/USD was making a small bullish breakout, and as a result, GBP/USD trades hit the take-profit level. Although I closed the EUR/USD buy order manually to avoid the unwanted loss, at the end of the week, I was a gainer at all, and this is a challenging task to take a short-term trading opportunity on currency pairs.
The Overview of the US Dollar Index:
- The greenback movement from the US Dollar Index was stopped in the middle of the last week, and the price of the US Dollar Index was rejected from the weekly support line at the 92.95 price mark. However, after making the 4-week higher price at 93.49, the price of the US Dollar Index moved back towards the bearish region and retouched the weekly support line again. At the time of the market closing, the price of the US Dollar Index was trading around the 93.25 price mark.
- In the 4-hour time frame, the price of the US Dollar Index is entirely on the bullish trend, and at the beginning of the week, there were some ascending bullish trends from the US Dollar Index. However, the US Dollar Index market was very volatile during the FOMC statement, and the price of the US Dollar Index formed a long-legged Doji candlestick pattern towards the bearish region during the FOMC session. The MACD technical indicator formed a strong bullish divergence. On the other hand, the 100-Day and 200-Dy Simple Moving Average indicated the price of the US Dollar Index towards the bearish region. However, from a technical perspective, I am looking forward to a potential buying opportunity on the US Dollar Index, and the price of the US Dollar Index should be trading above the 93.80 price mark within the following week.
A Sell-trade Opportunity in Bitcoin:
The price of Bitcoin has been hovering towards the bearish region, and the greenback movement started after making the multi-month lower price of $39,500. There was a solid recovery towards the bullish territory, and the price of Bitcoin reached its higher price of $45,000.
- Active Trades:
The Entry Point:
- In the hourly time frame, the price of Bitcoin is entirely on the bearish trend, and the price of Bitcoin formed a bearish engulfing pattern in the hourly chart. Earlier this week, the price of Bitcoin pushed back towards the bearish region and made an initial support line at the $39,500 price mark. For a multi-month lower price, the price of Bitcoin was not stable towards the bearish region and pulled back towards the bullish area for recovery purposes.
- However, a bullish greenback created an initial resistance line of $45,111.From the technical perspective, the price of Bitcoin has been trending towards the bearish region, and the MACD technical indicator has formed some solid bearish divergence, which indicates a further bearish breakdown of Bitcoin. So, the perfect sell entry started from the initial resistance line of $45,100.
The Exit Point:
- There is a strong support level at the $39,526 price mark and, initially, the price of Bitcoin was rejected from the support line. Furthermore, the price of Bitcoin was trying to recover some price towards the bullish region, and there was the psychological mark of $50,000. The price was more stable below the psychological mark. However, the momentum of the price of Bitcoin is entirely on the bearish trend, and the price is aiming to reach below the $40,000 psychological mark.
- From the technical perspective, the price of Bitcoin is entirely in the bearish trend on the daily chart, and the MACD technical indicator has formed some solid bearish divergence on the daily chart. The Zigzag technical indicator formed a bearish turn too, but the moving average indicator indicates the bullish breakout from Bitcoin. However, the sell entry will exit when the price of Bitcoin can’t reach below $39,000 and pull back towards the bullish region. A break of the $46,000 price will assure the exit point of the selling opportunity for Bitcoin. Overall, I am looking forward to a potential selling opportunity on Bitcoin for long-term traders, and the price of Bitcoin should be trading around the $35,000 price mark.
Open Trades Update:
- During the weekend, I like to trade in cryptocurrency, and I always select Bitcoin for cryptocurrency trading because of the higher volatility of Bitcoin. At the beginning of the session today, I executed some sell orders on Bitcoin. Currently, trades are floating with a good amount of profit.
- At this time, I am going through the long-term trading plan, and that’s why I am not going to close trades with a lower profit. Now there are around $42 profits, and I did not set the take-profit and stop-loss levels for these traders because I will decide these levels later. However, I am sure that I can get good profits if I go through my short-term trading plan, and I will re-think it.
That’s all from the center, and thank you very much for staying with me. Have a happy weekend with your friends & family.