The Daily chart
Bitcoin has been up trending on the Daily chart for the last 3 months. The chart suggests that the price made a breakout at a level which could have been a very strong level of resistance. Since there has been an explicit daily breakout took place, so BitcoinUSD daily trader should keep their eyes on the pair to look for buying opportunities.
Let’s have a look at this chart.
Chart 1 - Bitcoin-USD Daily Chart
The price on a number of occasions had rejections from the level of 6817.75. After being held by that level, the price went all the way to 3107.35 as well. Then, the price started going towards the North and made a breakout at 6817.75. This certainly is a long desired breakout for the buyers.
To go long on BitcoinUSD, traders may get help from the H4- BitcoinUSD chart. Let’s flip over to the H4-BitcoinUSD chart.
The 4H chart
The level of 6817.75 to 7400.55 is the consolidation zone as far as the H4 chart is concerned. The price might range within that zone for a while. It may even start going towards the North and makes the breakout at the level of 7400.55 much earlier than we may think. In both cases, traders desiring to go long must wait for an H4 breakout at the last trading day’s highest high.
After the breakout, the price has enough room towards the North to travel. The level of 8476.20 may come as the level of resistance here first. Considering the consolidation zones range and the space towards the North, the risk and reward ratio is very lucrative. Thus, BitcoinUSD will attract many buyers as far as the Daily and H4 charts are concerned.
Entry: H4 breakout at 7400.55
Stop Loss: Below 6817.75
Take Profit: 8476.20