I've taken two clear buy signals since Bitcoin bottomed. Now there may soon be a third. BTC has hit strong resistance at around 8500, where it last peaked almost a year ago. If it manages to break through this resistance line, we could see another strong breakout.
As a 'Trend Following' trader, I only buy once the breakout has begun. Buying too early means you usually get caught in a lot of up-and-down choppy trading. The breakout is NOT inevitable, so I only buy if it actually happens, not just because I think it might happen.
If the breakout suddenly reverses after I've bought, then I will have a stop loss in place a little distance below the breakout level, and I will take a small loss.
As ever with trend following, there are a lot of small losses, and a few massive wins that outweigh all the small losses. The losses are the costs of trading, but the wins make it all worth it and make it very profitable to trade crypto.
If you'd like to see more of this kind of analysis, please like and follow. My book, THE CRYPTO TRADER, has just been published by Harriman House and is available on Amazon worldwide now. See the link below.
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BOOM! Smashed through that resistance line. I hope you bought the breakout, as I did. Now let's see how much fuel this breakout has in its tank....
Will help us to decide when the right time to enter
GlenGoodman
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@Ginossim, yes, it is important to find good entry points, places to buy where there is a good chance of a fast upward movement. Those breakout buys often give you a quick profit, and that nice"cushion of profit" makes it easier for you to hold your position when the price starts moving downwards in a short-term correction.