Bitcoin How to Trade

The price broke the downtrend line and we got confirmation for the trend reversal. MACD gives bullish signal. DMI becomes bullish but for confirmation the power of bulls we should wait when ADX line moves upward. Now there are 2 things which are against the upward movement. The volume is low and RSI is at the overbought zone and it gives bearish signal.
We must be careful with any trades. Even the market is at the possible bottom, the price can drop lower. The current levels can be used for opening long positions but if the price breaks 6500.00 support, 6000.00 and 5000.00 levels will be good for adding more volume to the long positions. It’s just a variant how to invest properly and have opportunity to get good profit. If you want to know when we can consider that the market moves in the bullish trend, we have to wait when the price breaks the previous swing high. Now we have the new swing low which is higher than the previous one, and when the price moves above 7500.00 level, the new swing higher high will be formed and the uptrend will be confirmed.
Opening long positions don’t forget about stop orders which should be placed below the support levels and swing lows. Profit targets should be at round numbers like 8000.00, 9000.00 and 10000.00 levels. As the market is at the possible bottom, the buy trades can be opened for long term with targets at 12000.00, 15000.00 and 20000.00 levels.

評論:

The price dropped again after the short term upward movement. We should be ready to see a new falling to 6500.00 support. And again this support level will play the key role. If the price bounce, we'll see a new upward movement to 7000.00 - 7500.00 levels. If the price breaks 6500.00, the market will move to 6000.00 support. We should keep an eye for the price action at the important levels and trade based on the exact market conditions.

評論:

The uptrend was confirmed.
Now we should wait for the confirmation from the daily time frame.