As Bitcoin (BTC) remains close to their maximum records, merchants seeking to join the upward trend can be facing a dilemma: should they now enter or expect a more favorable setback?
According to Markus Thielen, 10x Research founder, a setback to the old level of resistance turned into support of the Maximum May, below $ 112,000, would be the best entrance point.
“We would prefer to see Bitcoin again try its rupture level of $ 111,673 to provide a more favorable risk/reward point,” Thieen said in a note to customers on Monday.
The risk reservation ratio compares the potential loss of an investment with its potential benefit, which helps merchants determine whether potential gains justify the associated risks. Operators generally go to a risk-re-risk ratio of at least 1: 2, which requires bullish tickets near the key support levels, such as $ 111,673 in the case of BTC.
It is common for the markets to visit the rupture points again before organizing larger runs, which means that a possible setback can be ruled out at $ 111,673. At the time of writing, BTC was strongly quoted to around $ 119,500, having increased more than 1% on Sunday in the middle of reports that the United States had reached the largest commercial agreement with the European Union.
But what happens if the significant setback does not develop? In that case, the best entry would be greater than $ 120,000, marking a break above the trend line that connects on July 14 and July 23.
“A break over the line of descending trend, particularly a sustained movement above $ 120,000, could justify re-understanding with the trend, although it would justify unusually adjusted detainees,” said Thielen.
