Home Forex Market Analysis Forex Signals Bitcoin: Entry on Consolidation.

Bitcoin: Entry on Consolidation.

143
0

Bitcoin had a sharp reversal movement early morning today. This movement is creating an engulfing candle in the daily chart. The hourly chart shows a  complex reversal formation followed by a large bullish candle which creates a morning star figure on strong volume.

The Next hourly candle pierces through the upper limit of the channel and also through the red descending trendline that marks the mid-term downward trend. The following candlesticks are creating a consolidating triangular structure that basically is a continuation signal.

The trade shows a 4:1 RR and the current momentum is bullish, therefore this is basically a trend-following trade.

Key levels of the trade:

  • Long entry level:7000
  • Stop-loss: 6,890
  • Take profit: 7,400

Risk:

  •     1 BTC: $110
  •  0.1 BTC: $11
  • 0.01 BTC:$1.1

Reward: About 4x the risk.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here