Bitcoin: The Next Range Trade Opportunity

Bitcoin is coiling for a potentially explosive move in the coming days.

BTC is nearing the apex of a triangle that’s been developing for the last week.

And while the crypto market remains locked in a sideways range, there’s still a $2,200 range to trade.

But before we get to the potential breakout, I want to share the horizontal level to watch this month.

Bitcoin opened the quarter at $28,452, which promises to be a critical level.

In fact, it has been critical resistance for BTC on a daily closing basis since March 19th.

That’s a significant hurdle for Bitcoin bulls this month.

However, a more appealing trade idea using that level would be a deviation above it rather than looking for longs on a reclaim.

In other words, if Bitcoin were to close a day above $28,452 and then close right back below, it would confirm a bearish deviation (fakeout) and expose lower levels.

That doesn’t mean we will get it, but it would be an appealing setup if it materializes.

Now for the BTC triangle that could break any hour.

We have a 4-hour triangle pattern that’s developed in the last week, with resistance coming in at $28,240 and support at $27,900.

Given the short liquidations I’m seeing for BTC and ETH, I’d prefer to see a move higher first to flush shorts up to $29,500.

At which time, I’ll start looking for a short entry.

Even the Bitcoin liquidations heatmap points to a cluster of short liquidations near $29,500.

The price of BTC tends to gravitate toward clusters of liquidity just like the one above near $29,500.

I may also play the long side here if we get it and I can secure a favorable entry.

That requires a 4-hour close above triangle resistance at $28,240 and potentially a daily close above the $28,452 quarterly open.

If we get it, my target will be $29,500.

But as mentioned above, any bearish deviation from the quarterly open (close above and back below) would open up a potentially lucrative short opportunity.