The cryptocurrency bounce continues!
After bottoming at about $3,200, Bitcoin has been trading in a beautiful uptrend. In my last post I pointed to the positive underlying trends in the cryptocurrency market, and so far the bounce has continued to play out.
Each breakout has been followed by a beautiful sideways consolidation for 24 hours and then another breakout of about 10%. I expect this pattern to continue for at least the next few days. The most recent breakout pushed Bitcoin past resistance at $4,100 on the highest bullish volume yet. The huge volume of this breakout reaffirms my view that the near term bottom is in for bitcoin.
The $4,100 resistance level should become a support level for Bitcoin. I expect Bitcoin to trade sideways between $4,100 and $4,250, before breaking out and testing the $4,500 resistance level in the next couple of days.
I'd recommend entering a long position in bitcoin at the current price of $4,173. I'd close my position if bitcoin falls below $4,100 for a loss of $73, and I'd take profits at $4,500. Risking $73 for a possible gain of $327.
Good luck and happy trading! :)