Skip to main content

BITCOIN – To buy or not to buy?

The Bitcoin price in USD appears somewhat overextended. On the daily chart it is be stalling below a slightly descending resistance line.
Should the price break above the historical price peak at 4,485 BTC/USD then an new impulsive leg higher should be expected.

Bitcoin in USD - Daily Price Chart

Should on the contrary a price correction take place then  there appears to be a very nice trendline convergence that should act as a strong demand area at 3,700 BTC/USD:

BREAKOUT STRATEGY:
– Buy the breakout with an entry-buy order above 4,485.
– Stop-loss order should be placed below the previous daily-low before the breakout and rapidly be moved to breakeven.

BUY-THE-CORRECTION STRATEGY:
– Place a limit buy order in the 3,700 area.
– Stop-loss order should be place below 3,600 (lower than the previous weekly spike lower).

Disclosure: I have no BITCOIN position but I am long LITECOIN, ETHEREUM and LTC/BTC.

No Comments Yet

Leave a Reply

Your email address will not be published. Required fields are marked *

wp-puzzle.com logo

This site uses Akismet to reduce spam. Learn how your comment data is processed.

 
%d bloggers like this: