Bitcoin Long Trade Setup
Updated
Bitcoin broke-down from an apparent bearish pennant on the 4H. The brake-down from the pennant was not confirmed by volume which suggests there was low market conviction in the move. To add to this price found resistance at both the 62% and 79%, printing a bullish engulfing pattern at the latter (1H confirmed). I look to open a long position. TP1 is at RR = 2, where I will take 50% off the table and raise stop above entry.
Note
The lows of the bullish engulfing pattern appear to be respected as support. In the future I will look for a retracement back into the reversal candlestick pattern before entering the position to improve RR.Note
Stop loss was raised above entry and position was closed resulting in break even.
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