My earlier bitcoin long trade forecast proved to be very accurate. The price of bitcoin – and other crypto assets – rallied on Saturday and Sunday and looks like some serious buyers caused this price action. Interestingly enough, there were some comments from Muslim-connected crypto start-ups ( reference to Blossom Finance ) that bitcoin is judged to be a halal. If this trend continues, one can expect more Muslim investors to flock. True or not, let’s look at our model.
Bitcoin bounced up from our Buy area 6670 and extended to 8350. Today’s retreat was not a surprise – every move need a breath. However, this may be a medium-term bullish run and, in any case, with our early entry at 6670 and close stops below, we will have pretty solid foothold. I expect this move to continue up to 8690 – first target and 10720 – second target. Further price action is vague at the moment.
As seen on H4 chart, corrections down to 7580 and 7150 will make convenient entry points for another short-term long trades or adding to earlier long positions. Please, do not forget that bitcoin price differ a lot at various trading venues and prices on these charts are not precise. Treat those as zones or areas rather than exact price levels.
Use stops as discussed in previous posts – breaking previous lows of 5900 is a strong signal to quit all longs.