Trade Recommendation: Bitcoin


The bias continues to be bearish with the price trading below all Pivot levels (Daily, Weekly and Monthly). While there is a slim chance the market could push through theses levels, this is not probable at this time. Hence, we need to look for a break to the downside below recent lows.

Moving Averages are flat so these are inconsequential at the time of writing.

Our confirmation to go short will be when the price breaks below the swing low of 6566.69.

The action to take is to place a sell order to enter the market short if the market trades below the swing low. This will confirm the market wants to move lower. Place the stop loss at the Opening Range high and the profit targets stated below.

Entry Price: 6560
Stop Loss: 6825
Profit Targets: First profit target 6090 . Second profit target 5405. Once price reaches the first profit target lower the stop loss to breakeven. Then if the market follows through to lower levels manage the trade by trailing a stop loss 150 points behind until second profit target is reached or stopped out.

Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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