Trading Strategy: “Breakout with Confirmation and Retest”♟️
Current context:
Bitcoin is trading near $97,900, very close to the key psychological resistance of $100,000, driven by strong inflows into ETFs. An upward breakout is expected if the volume is maintained.
Objective of the strategy:
To take advantage of a breakout confirmed by volume and a possible pullback to take a more secure position with a high probability of success.
Phases of the strategy:
1. Wait for confirmed breakout:
Levels to watch:
$100,000: key psychological resistance.
Confirmation = daily close above $100K with increasing volume.
2. Ideal entry:
Entry on the pullback to the breakout level:
If BTC breaks $100K, wait for a retracement (retest) to the zone between $98,500 - $100,000.
Confirm a bounce in that zone with a bullish reversal candle (e.g., hammer or engulfing).
3. Take Profit (TP):
First target: $105,000
Second target: $109,000 (technical maximum projected by current momentum)
4. Stop-Loss (SL):
Recommended level: $96,000, below the recent support and the pullback, to limit losses if the breakout is invalidated.
Estimated Risk/Reward:
Risk: $4,000 (entry at $100K, SL at $96K)
Reward: $5,000–$9,000 (TP1 at $105K, TP2 at $109K)
Risk/reward ratio = 1:1.25 or 1:2.25 (very favorable)
Additional tips:
Use a trailing stop if BTC exceeds $105K to protect profits.
Do not enter on the initial breakout if the volume is low. It could be a false signal.
Ideal for traders with a short to medium-term technical focus.