Bitcoin Trading Idea

Let's look at the daily chart of Bitcoin and try to understand possible price movements of this market. We can see that price bounces from MA50 and the support level 2400.00. This price reversal is confirmed by the candlestick pattern, RSI and MACD histogram. It's a signal that probably correction is over and we can see up movement. We should place buy-stop orders above the high of the bullish candle - it's 2560.00 level. But look at the downtrend line which is near with our entry level. It's the resistance line which can stop and push the market lower to the uptrend line. That's why if you want to have more safe entry, you should do it only after price breakout above this downtrend line. It will give us additional confirmation that the market is going to reach the resistance level one more time. But if price bounces from the downtrend line and then breaks the uptrend line, we'll have possible down movement to the key level 2000.00 and new long opportunity.

P.S. And what do you think? Please, share your thoughts in comments )