BTCHUSD made a significant move on the daily chart. It seems that the price has found a good level of support and made a breakout at a resistance level. The price had a rejection from the resistance level earlier. Thus, BTCUSD traders may get excited again with its recent breakout. Let us have a look at the daily chart to find more about it.
The Daily Chart
The level of 10711.60 is the level of support here. The daily price action suggests that the price has shown some strong bullish movement right from that level. An inside bullish bar to start with then the price has continued to go towards the North. Moreover, a breakout has taken place at the level of 12018.30. This would surely attract the buyers to go long on the pair. Usually, a pullback after a breakout is needed for the buyers to take an entry. In this case, a pullback up to the level of 12018.30 is what buyers may wait for. The H4 chart may explain the situation better. Let us have a look at the H4 chart.
The H4 Chart
One of the H4 candles made an explicit breakout at the level of 12018.30. The price headed towards the North for two more candles. If the price starts having a correction and comes back at the support level, then an H4 bullish reversal candle would be the signal for the buyers to go long on BTCUSD. To sum up the trade setup, we may take our entry and set our Stop Loss and Take Profit as below:
Entry: After an H4 Bullish reversal candle at 12018.30
Stop Loss: Below trading day’s lower low
Take Profit: 13516.05
The Bottom Line
The price may continue to go towards the upside. However, if there is no pullback, then the H4 traders might not jump into it to go long. Without a pullback, the stop loss is to be set all the way down where the H4 trend started. This would allow the buyers to have a bad risk and reward ratio. Let us wait and hope that the price makes a pullback here.