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.
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:
– 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.
– 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.