How to profit from it?

Yesterday, after touching $72K resistance, Bitcoin (BTC) pulled back rapidly by -4.9% to $68.5K.

Our Trade Setup clearly shows that, since March, BTC has been trading in a Sideways Channel, with $72K acting as a critical resistance level where price got rejected a five times now!

Understading Support and Resistance is a key pillar of Technical Analysis (TA) that we teach in Lesson 3 of our new Crypto Trading Course.

In fact, some traders make a living simply by trading around Support and Resistance.

BTC (Bitcoin): Sideways Channel ($60K – $72K)

Source: altFINS

BTC Trade Setup: Price is in an Uptrend, consolidating in a Sideways Channel ($60K – $72K).

Swing traders: could trade the channel – enter near $60K and exit near $72K. Stop Loss at $55,800, just below prior swing low.

Trend traders: wait for price to break out of the Channel, above $72K, which would signal continuation of Uptrend with upside potential to $79K next.

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How to Profit?

With a pullback in BTC, the whole altcoins market took it on the chin and is down by 10-20%.

This can present opportunities, if you know how to find them…

Here’s a trading strategy we teach in Lesson 5:

Oversold and Uptrend strategy (see results)

This trading strategy finds coins in an Uptrend that are oversold (RSI < 40).

Normally, oversold conditions require RSI to dip below 30, but for coins in an Uptrend, even 40 or less is considered oversold, due for a bounce.

Oversold in Uptrend

You can find this strategy on the Screener in our Pre-Set Filters:

NEAR (NEAR) is an example of an asset that’s Oversold in an Uptrend

First warning was noted in our Trade Setups a week ago when price had a bearish breakout from Rising Wedge. (see chart below)

Price has pulled back since then and is now Oversold based on RSI below 40.

And it’s approaching a Support area at $6.00.

That could be an opportune swing trade entry, with +25% upside potential back to $7.70.

NEAR (NEAR) – Oversold in Uptrend

Source: altFINS