Trade Recommendation: Bitcoin

This trade recommendation is setting up quickly and requires prompt attention

After this week’s route, it could be time for a retracement. With the ‘A’ up line breached and the market trading at or above this level for at least 15 minutes, it’s time to buy.

The action to take is to place a buy order to enter the market long. Alternatively, a more conservative entry is to enter on a move above the intraday high of 8550. The price has confirmed the market wants to move higher.

Place the stop loss and the profit targets stated below.

Entry Price: 8550
Stop Loss: 8240
Profit Targets: First profit target 9085. Second profit target 9775. Once price reaches the first profit target raise the stop loss to breakeven. Then if the market follows through to higher 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.

I am the founder of VirtuesTrading.com, where traders can learn to use my Virtues Trading System. Formerly a Commodity Trading Advisor, I got my start in the Energy and Precious Metals Options & Futures pits of the New York Mercantile Exchange. I operate on the premise of efficient markets, the management of risk through the analyzation of price action and technical indicators. I have a BA in International Relations from the University of Southern California.