Bitcoin Entry Levels

The price broke 5000.00 strong resistance level. We could buy above 5050.00 based on a breakout signal. If you missed such trading opportunity, let's think about new possible entry levels. Now we can see that MACD lines and DMI confirm upward movement. But MACD histogram and RSI are going to reverse and it's a signal of possible price reversal with further retracement. How should we trade? First of all, there is a variant that the market can continue upward movement. In order to catch such price movement, it's possible to place pending orders for buy above the local high at 5450 level. But this is a high risky trade because 5500.00 level can stop and reverse the market. If you decide to use this signal and level for buying, you must invest only small part of your deposit. Buying at 5450.00 you must understabd that this entry level is too far from optimal levels for opening long trades. That's why we also should wait for retracement and buy from support lines or levels. Now the most reliable levels for buying are at the support zone formed by 5000.00 and 4900.00 support levels and SMA20. If price dropes to this zone, we'll buy based on reversal signals. If the market breaks this support zone and moves lower, we'll also have to be ready open new long trades but on lower levels. In such way SMA50 will be a good support line. Buying from SMA50 should be based on confirmed reversal signals. Don't forget that money management plays a very important role. Don't invest all your money in one trade and a market.

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After posting this trading idea Bitcoin made a good jump to 5900.00 level. There is a reasonable question, what to do now? There are several variants. You can hold Bitcoin now and close the part of trade volume near 6000.00 level. You can hold and wait for reaching higher targets at 6500.00 and 7000.00 levels. You can close a part of volume now and wait for a possible retracement to 5000.00 level. The main things I would like to pay attention. Bitcoin has great potential for further upward movement to 7000.00, 10,000.00 level and even higher. It means you always must be in this market. The market moves in the strong uptrend, up and down, it means that you have to fix a part of profit when the market reaches possible reversal zones (mainly round numbers) and open new long positions in dips. This is a profitable trading plan for this market based on trend market conditions.