Market Overview: Bitcoin Futures
Bitcoin futures are Trading towards a Rectangle Measured Move and $40000. This week, the price closed higher 7.80% respecting the past week’s low. The Bull Breakout is evident, there are magnets close above that are probably going to be reached.
Bitcoin futures
The Weekly chart of Bitcoin futures
![Bitcoin Direct Towards Rectangle's Measured Move and $40000 1 Bitcoin towards rectangle's measured move and $40000. Weekly chart of Bitcoin Futures on November 11th of 2023.](https://www.brookstradingcourse.com/wp-content/uploads/2023/11/bitcoin-weekly-5-bull-micro-channel.png)
Past: Support and Resistances
- The price started a Strong Bear Channel:
- Bear Flag’s Breakout Point.
- Major Lower High.
- Then, failed a Breakout Below a Bear Flag and Reversed up, forming a HSB (Head and Shoulder Bottom) pattern, that broke up:
- 2022 Low.
- 2022s Major Higher Low.
- 2023 Major Higher Low.
- HSB Breakout Point
- HSB Measured Move around $35750 already reached.
- Lately, the price has been sideways creating a Double Top and a Double Bottom, which is a Trading Range, and because the Trading Range was not wide, was also a Rectangle and Breakout Mode Pattern.
- Trading Range High.
- Trading Range Low.
- Measured Move at $39500.
Present: Market Cycle
- The price reached the HSB Measured Move during the past week.
- There was some profit taking, since the price reversed down slightly after reaching the Target.
- This week, the price closed as a good bull bar, closing above its midpoint and the past week’s high.
Future: Inertia
- A bull breakout of a Breakout Mode Pattern (the Rectangle) has a 50% chance of leading to a swing trade, which means that the price might go towards $47000.
- After this week’s Bull Bar, the Bull Breakout of the Rectangle (or Breakout Mode Pattern, Trading Range…) it is evident. There is a 60% chance that the price is going to keep Trading higher.
- Probably, the price will get to $40000 big round number, where there is a confluence of resistances and hence, it is a magnet.
Trading
- Bulls:
- Some Bulls bought above the Rectangle’s high (Breakout Mode Pattern).
- Others bought a couple of weeks ago, above the first bull bar that closed above the Breakout Mode Pattern.
- Stop loss below the past week’s low is also ok
- There should be buyers below this week’s low.
Most bulls are placing their stops below the Breakout Mode Pattern. Still, there is a 40% chance that the price will reverse, and bulls might exit below a good bear bar closing around its low.
- Bears:
- They would rather not sell while the price is rising, and they will either wait for a bear signal bar for a failed bull breakout setup.
The Daily chart of Bitcoin futures
![Bitcoin Direct Towards Rectangle's Measured Move and $40000 2 bitcoin1 daily bull spike and channel parabolic wedge top1](https://www.brookstradingcourse.com/wp-content/uploads/2023/11/bitcoin1-daily-bull-spike-and-channel-parabolic-wedge-top1.png)
Past: Support and Resistances
- The price did a Bull Spike (Breakout) and Bull Channel.
- Breakout Points are now support.
- Bull Spike Low.
- Parabolic Wedge Top Low.
- 20-day Exponential Moving Average (EMA).
Present: Market Cycle
The current Market Cycle is a Tight Bull Channel, you can also call it a Bull Spike and Channel.
Future: Inertia
- 80% of attempts to reverse a Tight Bull Channel are going to fail; moreover, the price should Trade higher towards resistances.
- If there will be a bear reversal, the price will probably transition into a Trading Range first, that means, going sideways for at least 20 days.
- Or reach their targets.
- Weekly Rectangle’s Measured Move.
Trading
- Bulls:
- Buying far from the 20-day EMA is hard, most Traders buying high are trading with a small position size and are willing to buy more during a retracement.
- Bears:
- Those willing to sell are not expecting a swing down, but some scalps. For swing bears willing to sell, first, they will wait until there is a Trading Range and a topping pattern.
Market analysis reports archive
You can access all the weekend reports on the Market Analysis page.
Thanks again for a clear and informative price analysis, Josep. These weekly updates are incredibly valuable as a gauge for the week ahead and a reflection of the weeks past.