Market Overview
Friday's trading session witnessed a black swan event, with prices initially oscillating within a defined range. During the European trading hours, Bitcoin (BTC) and Ethereum (ETH) breached their weekly resistance levels, reaching daily chart pressure zones. This presented a strategic shorting opportunity, which we capitalized on through precise entry points:
- BTC short position at $106,100
- ETH short position at $2,562
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These positions yielded substantial returns, demonstrating the power of technical analysis combined with disciplined execution. Successful investing isn't about spectacular weekly gains—it's about sustainable profitability through:
- Short-term volatility plays
- Medium-term swing trades
- Long-term trend following
Bitcoin (BTC) Contract Technical Analysis
Daily Chart Perspective
- Bearish confirmation with consecutive red candles
- Price trading below all key moving averages
- MACD maintains a death cross formation
- Strong downward momentum continues (as consistently highlighted)
4-Hour Chart Observations
- European session breakout proved false as resistance held
- Overnight continuation below previous support levels
- Current price action shows persistent selling pressure
- Key support now at $102,300
BTC Trading Strategy (June 21)
| Entry Zone | Stop Loss | Target | Risk Ratio |
|---|---|---|---|
| $103,700 | $104,200 | $102,500 | 1:2.4 |
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Ethereum (ETH) Contract Technical Analysis
Daily Chart Breakdown
- Clear downtrend with lower lows established
- Price comfortably below moving average cluster
- MACD divergence confirms bearish momentum
- Breakdown below previous swing low ($2,450)
Hourly Chart Dynamics
- False breakout above micro resistance
- Subsequent rejection forming new lower high
- Previous support at $2,450 now acts as resistance
ETH Trading Strategy (June 21)
| Entry Zone | Stop Loss | Target | Risk Ratio |
|---|---|---|---|
| $2,450 | $2,480 | $2,400 | 1:1.67 |
Weekend Trading Considerations
- Reduced volatility expectations due to lower liquidity
- Position sizing adjustments recommended
- Avoid overtrading during thin market conditions
Frequently Asked Questions
Q: Why did Friday's breakout fail?
A: The move lacked volume confirmation and occurred at established resistance zones on higher timeframes, creating ideal short entries.
Q: How do you determine stop loss placement?
A: We use a combination of:
- Recent swing highs/lows
- Volatility measurements (ATR)
- Key psychological levels
Q: What's the safest way to trade weekends?
A: Consider:
- Wider stops to account for volatility
- Reduced position sizes
- Focusing only on high-probability setups
Q: When might this downtrend reverse?
A: Monitor for:
- Bullish divergence on MACD
- Price reclaiming key moving averages
- Higher timeframe support holding
Risk Management Reminders
- Never risk more than 1-2% per trade
- Always use stop losses
- Avoid revenge trading after losses
- Weekend positions require extra caution
Note: Trading involves substantial risk of loss. These analyses represent our technical perspective, not financial advice.