BTC/USD Technical Analysis: Take the Dip

BTC/USD Technical Trade

The weekly chart affirmed a bullish engulfing reversal pattern where the current dip is classified as corrective weakness before a resumption of the uptrend.

In order to refine the entry we pay attention to the 4hr chart.

BTC/USD 4hr Chart

BTC/USD 4hr Chart

The triangle that is being painted at the time of this writing is unlikely to produce further weakness as the price reached its upper resistance. Based on our financial model for the asset, BTC/USD is expected to breach the feeble resistance, targeting $456 initially and then $474. The trade is 100% technical and we do not find the need to rely on other fundamental data we do in FX, Commodities, Global Indices and Stocks. If you relatively new to digital currencies do note that this is a relatively new market that is filled with trading opportunities for the short, medium and long ter.,

Bitcoin (BTC/USD) is currently trading at  $431.30 at the time of this writing.

Bitcoin Trade Details

Long entry price: Market price
Take Profit: $474
Protective stop loss order:: $417

Estimated duration: 14 days
Risk Ratio (RR):  1 : 2.7 (approx.)

Keep following this page for future updates on this trade.

*Please note we are reluctant to apply any technical indicators due to insufficient market data. Price action is our core theme for Bitcoin trading strategy.

09/05/14 UPDATE:  BTC/USD is trading at $438.00, minor profit for the long trade.

20/05/14 UPDATE: BTC/USD is trading at $440.31 at the time of this writing. We feel uncomfortable with the right range of the price and liquidate 45% of the trade at market price.

23/05/14 UPDATE: BTC/USD is trading over $500 at the time of this writing. Our bullish target was triggered at $474, garnering a decent profit over the long trade in Bitcoin.

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