ThCurrent Data (Approximate as of May 24, 2025):
- Bitcoin price: around $109,000
- RSI: about 29 → in oversold territory (potential buy signal)
- Stochastic Oscillator: below 20 and starting to move up (bullish crossover)
- MACD: MACD line is approaching a bullish crossover with the signal line (additional buy confirmation)
- Price near a strong support level (e.g., previous support around $108,500)
Trading Decision:
- Open a long position (buy) at the current price ~ $109,000
- Set a stop loss at $107,500 (just below the support level to minimize risk)
- Set a take profit target at $112,500 (previous resistance or about 2.5% above entry price)
Why?
- RSI at 29 indicates the price might have reached a short-term bottom.
- Stochastic is reversing upwards, signaling new buying pressure.
- MACD approaching a bullish crossover confirms buying strength.
- Price is at a strong support level, reducing the chance of a further drop.
Trade Management:
Close the trade or take profits if strong reversal signals appear (e.g., RSI > 70 or bearish MACD crossover).
Monitor the indicators daily or on the 4-hour chart.
If price moves toward the target, consider moving the stop loss to breakeven to protect your capital.
