Bitcoin ($BTC-USD) was trading just above 6,700 at that time (Aug. 27).
It was also attempting to break out from a bullish consolidation pattern with higher lows.
Due to the bullish price action, we listed $BTC-USD as a short-term crypto trade entry in that first issue of CryptoPicks.
We bought $BTC-USD at market around the 6,800 level, while setting a protective stop at 6,049 (below support of the prior low).
The next day, Bitcoin followed through with a breakout above short-term resistance and past the 7,000 mark.
$BTC has been trending steadily higher off the August lows since then, and is currently showing a +8.1% gain since our Aug. 27 buy entry.
The chart below shows the original trade setup listed for CryptoPicks subscribers at the time of buy entry:
The weekly chart of $BTC-USD (below) remains in chop mode, but the past five weeks of trading (the pullback and bounce up) look much different from the last two pullbacks.
The price tightened up considerably in August, with the 10-week moving average (teal line) starting to turn up.
If the 10-week moving average continues turning higher and crosses above the 40-week moving average (orange line), it will be an important bullish signal for Bitcoin traders.
Notice on the chart below that each major pullback within this year’s consolidation has been less substantial:
Ideally, we’d like to see another week or two of higher prices, followed by 2-5 weeks of sideways consolidation that holds above the rising 10-week moving average.
If the price action plays out in this scenario, then we could see an intermediate-term buy signal emerge off the lows.
Check it out:
As detailed in the August 26 issue of CryptoPicks, our price target listed at time of entry was 7,850 (+15% above buy entry).
More than halfway to our original price target in just a week, our Bitcoin ($BTC) swing trade is working well so far.
If Bitcoin hits our current price target of 7,850, we will automatically sell into strength to score a +15% gain on the cryptocurrency swing trade.
If we make any changes to our $BTC-USD target price or stop price in the meantime, we’ll immediately send a trade alert to paid subscribers of CryptoPicks.
As always, remember to always honor your protective stops!
Check out our latest CryptoPicks bitcoin video below for further technical analysis on the cryptocurrency charts above:
Start your trial subscription to CryptoPicks today for just $8. Then, only $28 per month after your trial period.
You know your trading rules. You've written them down. You even follow them in practice. Then the market opens, and…
Most traders would have sold Micron ($MU) at +20%. Some would have panic-sold when it pulled back to the 8-day…
Crude oil dropped sharply after the Iran ceasefire was announced, and most traders were glued to the headlines trying to…
Three weeks before this post, we moved to 100% cash right before the NASDAQ dropped 8.5%. Most traders either tried…
As Bitcoin breaks through critical resistance levels, seasoned traders are eyeing both opportunities and warning signs in today's volatile crypto…
While most investors are running for the exits, savvy traders are quietly building watchlists of stocks showing remarkable resilience. These…