Bitcoin: New Uptrend and Possible Buy Opportunity

The price broke the downtrend line, and it gives us a trend reversal signal. Before it, we got a bullish divergence, which also belongs to a trend reversal group of signals.

RSI confirmed the price reversal from 6500.00 support zone. MACD lines and histogram support further upward movement. DMI becomes bullish, and we don't have signals confirming the strength of sellers.

All these signals create for us a buy opportunity. As we use the daily chart, it will be better to trade in the long run. Such long trades allow us to take part in a new bullish trend, and they provide us a good risk-reward ratio. If you don't want to use long term trading, you just need to focus on other signals.
Does it mean that the price won't be able to reach 6000.00 support zone, which acts as the bottom? Of course not, we can get a false breakout and a downward movement to 6500.00 and 6000.00 support levels. If so, we will be able to get other trade opportunities with better entry levels.

It is very important! If we try to catch a new uptrend, we have to understand our risk, and we must know our exit levels. If the price drops below 6000.00, t will be a strong bearish signal. That's why it is better to place stop orders for long trades below the bottom. Also, as the market is manipulated and risky in the period of holidays, because of low volatility, proper money management is very important. I don't want to risk for such long trades more than 10% of the capital.

What do you think about this breakout? Do you want to use it as a buy signal? Share your trading plans below this post! Let's discuss it!

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