The technical setups posted below use simple trend detection, support and resistance, channels, pattern and candle analysis. We aim for high-probability trade setups on BTCUSD, and use very few indicators. All charts use BNC’s Bitcoin Liquid Index for maximum accuracy.
The timeframe for trades is 1 to 7 days, so we’ll use 4h candlesticks. Bitcoin is best traded as a purely speculative commodity on 4h+ timeframes, although I’ll briefly describe a shorter-term scalp setup.
This section is based on internal (anonymized) Whaleclub trading data and is published exclusively on BNC.
Current Active Long vs Short Volume Ratio: 3.5:1
Average Active Long vs Short Volume Ratio: 2.2:1
We have a 59% excess in active long volume relative to the average. The average weighted long entry price is $411.24, which is slightly lower than the current market price – this means that on average, current active longs are in the green.
Sentiment is bullish. The risk of a long squeeze is above-average due to the high long ratio, although not as high as last week – where we had a 90% long ratio excess, which resulted in a $15 sell-off (long squeeze) as predicted. If price breaks down below