This is a longer term buy trade. Since the pullback we have seen off the 10,000 level the price has essentially been range bound with Bitcoin, and this is reflected in the Monthly Pivot Price. However, we can be confident in the support levels.
You can see the Monthly Pivot Range low was key support, tested twice over the last week and not only held the level but showed 2 hammer candles, which are signs of a bottoming.
We must wait for confirmation however before going long. This will increase our chances of success if we buy on strength. Using the Daily chart we will want to buy on a close above the Weekly Pivot Range high level. Place the stop loss just below the Weekly Pivot low and the Hammer candle low. Set the profit targets stated below.
Entry Price: 8862
Stop Loss: 8080
Profit Targets: First profit target 9960. Second profit target 10120. Once price reaches 9350 raise the stop loss to breakeven. Then if the market follows through to higher levels manage the trade by trailing a stop loss 400 points behind until second profit target is reached or stopped out.
Disclaimer: The writer owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.