BNBUSDT: Double Bottom and When to Buy
Binance Coin / TetherUS BINANCE:BNBUSDT
The price reached the support zone at 14.00 level. We can see the reversal from this support, which was confirmed by RSI and MACD histogram.
We have 2 swing lows at the same price level. It tells us about a possible trend reversal chart pattern like a double bottom . You will be able to see it if you use the weekly chart.
We have the situation when the market provides us a buy opportunity. We can buy based on the reversal signal using the market prices. Stop orders for long positions must be placed below the local swing low. The profit targets should be at higher resistance levels like 22.00, 25.00, and 30.00.
If you want to get a more reliable signal, it will be better to wait for the upward movement above the broken uptrend line and the local swing high. Stop and profit orders must be placed at the same levels as they were described above.
If Bitcoin drops, this market also will be able to break 14.00 support and move to the lower support levels. If so, we will have to search for new trade opportunities.
Source: TW DLavrov