Trade Recommendation: Bitcoin Gold

The bottom may be in for Bitcoin Gold price. With a classic double bottom formed this past week we show an inside bar on the Daily chart, three sessions ago at the onset of the our new month.

There are 2 ways you could play this setup. You could wait for a long while for the market to reach the Monthly Pivot Range high to confirm a buy, but you risk missing out on the move from this level all the way up to above .0070000.

The more aggressive way would be to buy at this level and simply place a stop loss below the double bottom price. The amount at risk is small compared to the profit potential. However, you are faced with the resistance of the Weekly Pivot Range.

With support from the 3 Day and 6 Day Rolling Pivot Ranges as well as short-term upside bias of the Daily Pivot Range this seems a worthwhile setup.

I would caution in this more aggressive approach to wait to buy on strength, which would be to buy above the previous day’s high at 0.006000

Place your stop loss and profit targets stated below.

Entry Price: 0.006000
Stop Loss: 0.005560
Profit Targets:
First profit target 0.006610. Second profit target 0.006880. Once price hits first profit target raise the stop loss to breakeven.

Disclaimer: The writer owns Ripple, 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.