Bitcoin has broken out of a big downtrend recently. This trend line is valid because of the multiple reactions that you can see in the chart. After the third touch of the trend line, Bitcoin finally broke out to the upside. As highlighted, Bitcoin is currently resting at the top of the support zone (6,500-8,000) which offers a relatively low risk long entry opportunity.
Trade Idea:
Start scaling in long positions now with a hard stop loss at or just below 6,000. You can add a small position here, and add a much larger position if Bitcoin drops to the 7,000 level. Also, I think that if we fall back below the previous downward trend line, it would be a good idea to cut losses and move on.
The profit exit target is in the resistance zone of 10,000-11,000, which is where Bitcoin had a double top pattern. The double top was confirmed on the breakdown below the 9400 level.
If you like my trade ideas, I blog almost everyday here: bigfryfinancialmarkets.com
I would be glad to have a conversation with all of you in the comments section. Good luck trading! :D
Trade Idea:
Start scaling in long positions now with a hard stop loss at or just below 6,000. You can add a small position here, and add a much larger position if Bitcoin drops to the 7,000 level. Also, I think that if we fall back below the previous downward trend line, it would be a good idea to cut losses and move on.
The profit exit target is in the resistance zone of 10,000-11,000, which is where Bitcoin had a double top pattern. The double top was confirmed on the breakdown below the 9400 level.
If you like my trade ideas, I blog almost everyday here: bigfryfinancialmarkets.com
I would be glad to have a conversation with all of you in the comments section. Good luck trading! :D