Bitcoin How to Trade

It looks like the price is going to reverse from 8000.00 level and we'll see a short term correction movement. The price can drop to one of the possible reversal zones at SMA50 and SMA100 lines. These zones can be good for opening new long trades based on confirmed price reversal signals with profit targets at 8500.00 and 9000.00 levels. Alternative variant: the price will break 8000.00 level and make a new high. It's possible because there is a strong uptrend. But buying above 8000.00 does not seem as a smart idea. We can face with a false breakout. Moving above 8000.00 level will confirm the power of buyers, but at the same time the market will become more overbought and have good potential for reversal and falling. That's why it's better to wait for a correction movement and only after that open new long trades. What to do with long positions now? If you have such trades opened below 7000.00 level, now you can fix a part of profit and leave some trade volume for long run. When Bitcoin falls, you will get new trading opportunities for adding more volume to your long positions.

P.S this is my opinion about Bitcoin and it is based on the current market conditions. Don't forget that you should make your own research and follow your trading plan.