Bitcoin Price Forecast: Three trade setups for BTC traders, but is $20,000 still on the cards?
- Bitcoin price shows a consolidation above the $16,450 support level as bulls fight for a further ascent.
- Three scenarios can play out for BTC, all of which forecast a move to $17,600, followed by a retest of $19,000.
- A flip of the $15,462 support level into a resistance barrier will invalidate this bullish thesis for the big crypto.
Bitcoin price reveals a tight consolidation above a stable support level, indicating that a volatile move is around the corner. Traders need to pay close attention to liquidity levels to grasp the three outlooks explained below.
Bitcoin price reveals its intentions
Bitcoin price created a bottom at $15,462 on November 9 after a steep 25% crash. Since then, BTC has attempted to recover and climb higher but failed to sustain a flip of the $17,593 hurdle or the last crash’s bottom formed on June 19.
The first scenario and an easy setup involve opening a long position at the retest of the immediate support level at $16,681. The targets include Monday’s high at $17,188, followed by the inefficiency termed Fair Value Gap (FVG) at $17,251. Although invalidation of this setup will occur on the breakdown of the $16,681 support level, investors can place their stop-losses below $16,521, bringing the total risk-to-reward ratio for this trade at 2.43R.
BTCUSD 1-hour chart
The second Bitcoin price setup considers the liquidity resting below the November 9 swing low and the November 10 swing high. Traders need to hunt for a bullish outlook which is possible after the market makers trigger a selloff that sweeps the November 9 swing low.
A quick recovery above $15,462 after this liquidity run would be an ideal place to open a long position for BTC in scenario number two.
The ultimate goal for this Bitcoin price setup is a retest of 2022’s highest traded volume level at $19,011. There are smaller take-profit levels on the way to the said level, where traders could reduce their position sizes. These levels include the $16,395 and $17,600 hurdles.
In total, this trade setup would provide a humungous 5.13R with a 22% upside.
If the momentum builds up under these bullish conditions, Bitcoin price could easily extend higher and tag the $20,000 psychological level.
BTCUSD 1-hour chart
The third scenario would involve Bitcoin price holding above the $17,935 hurdle. This development will allow traders to take advantage of the bullishness in the markets and open a long position at the said level.
The take profit for this Bitcoin price setup would be the $19,011 level, as discussed above, and the stop-loss can be placed below $17,234. This trade would provide a 1.53R and a 6% upside for BTC.
BTCUSD 1-hour chart
While all of these setups are based on sound analyses, Bitcoin price needs to stay above certain thresholds. One such level is the November 9 swing low at $15,462. A breakdown of this level and a flip into a resistance level on a daily time frame would invalidate all the bullish setups detailed above.
In such a case, Bitcoin price could slide lower and retest the $13,575 support level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
