In the H4 timeframe, Bitcoin (XBT/USD) formed a rounding bottom pattern and broke out the resistance at 11730 yesterday with increasing volume. An immediate pullback as a test followed right after the breakout as the first breakout drew out increasing supply. There are potential long entries based on either the reversal or the breakout setup after the confirmation. Watch the video below (timestamp starts 3:45) to find out how to trade breakout with high winning rate and to avoid the early entry or invalid trade using S&P 500 futures as a case study.
Below are the key parameters for Bitcoin potential long setup for trading session on 20 Oct 2020.
Entry: long stop order at 11840.
Stop loss: 11625.
Take profit: 12185.