Bitcoin may experience a further decline of approximately 25% before reaching key buying levels of $63,035 to $59,120. A structured three-layer buying strategy for Bitcoin futures is proposed, focusing on risk management.
The first buy order is set at $63,035 for 1 unit, the second at $61,345 for 2 units, and the third at $59,120 for 3 units. The plan involves an average weighted entry price of $60,514.17 and a total position size of 6 units, with a stop loss at $58,699.
The expected take profit level is $89,561, with a reward-to-risk ratio of 16:1. If the stop loss is triggered at $58,699, a loss of $10,892.55 occurs, while achieving the take profit at $89,561 results in total gains of $185,173.35.
The strategy includes no stop on initial buys for flexibility and a defined stop loss to manage risk. For short trading considerations, levels between $85,500 and $86,000 could serve as suitable entry points. Caution is advised when trading Bitcoin.
Bitcoin has seen volatility in recent weeks, and the outlined approach aims to take advantage of potential price movements while keeping exposure controlled. With a structured plan that spreads orders across multiple price points, the goal is to avoid the pitfalls of entering too early while maintaining risk at acceptable levels. Markets rarely move in a straight line, and the method focuses on allowing room for fluctuations without forcing immediate decisions.
Risk is tightly managed by structuring buys at predetermined levels instead of engaging in impulsive trades. Adam, for example, ensures that the first order is placed relatively early while keeping the bulk of his position reserved for lower levels. This way, if the decline continues, the average entry price remains favourable. The stop loss is placed at a level that signals an invalidation of the setup rather than an arbitrary figure. If triggered, it protects against unacceptable drawdowns while leaving enough breathing space for normal market noise.
The projected reward-to-risk ratio plays a major role in the reasoning behind this method. With the upside potential far outweighing the downside, even if only a percentage of these trades play out as expected, the overall return remains positive over time. Risk-to-reward calculations are not merely an afterthought but the foundation of this system. It allows individuals like Sarah to operate with a long-term mindset rather than reacting emotionally to short-term price swings.
Flexibility is built into the approach—specifically in the absence of a stop loss for initial entries. This tactic accounts for Bitcoin’s tendency to experience rapid wicks before resuming its broader movement. By maintaining a stop loss only at final levels, the strategy avoids unnecessary liquidations from short-term volatility. However, that does not mean holding blindly. When certain thresholds are met, positions must be adjusted accordingly.
For those considering short opportunities, the identified range near $85,500 to $86,000 presents a possible area of interest. This zone could mark an exhaustion point before a deeper retracement. Timing these setups requires patience, as rushing into positions prematurely increases unnecessary risk. When engaging in such trades, ensuring the proper balance between position size and exit strategy remains a priority.
Every part of this framework follows a structured decision-making process rather than emotional reactions to price swings. Maintaining discipline in execution, sticking to predefined plans, and avoiding impulsive trading will be key in the coming phases.
