Bitcoin – The 1st Profit Target Reached! What’s Next?
Bitcoin / Dollar BITSTAMP:BTCUSD
The buy trade, with entry level above 8300.00, reached the 1st profit target at 9000.00 resistance. The market could break this level and move higher to 9400.00 level. After that, we saw the retracement to 9000.00, which became a local support zone . The price bounces from this zone, and the price action at 9000.00 will show us the further market movement.
If the price can stay above 9000.00 support, it will be possible to see the upward movement to 10 000.00 major resistance. The 2nd profit target was placed at this zone, and the market will have good chances to bounce from this magic level. So, fixing the profit at 10 000.00 will be logical. If you missed buy opportunity based on the breakout signal above 8300.00 – it means you must wait for a new trading opportunity. You should wait for a correction movement to the important support line, levels and buy based on reversal signals, but for this, the price will have to break 9000.00 support.
If the price breaks 9000.00 support, it will be a signal confirming the downward movement, which will correct the previous strong impulse wave. The local uptrend line and the combination of Moving Averages with different periods will be the target for the correction movement. If so, you will need to search for the bouncing and buy based on the confirmed reversal signals. The estimated buying zone can be between 8600.00 and 8300.00 levels. If the market provides buy opportunities following this plan, the main profit target should be at 10 000.00 resistance zone . Stop orders for such trades should be placed below the local swing low and the lowest SMA .
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Source: TW DLavrov