Bitcoin: BTCUSD - Consolidating recent gains: Next Trade Point

Updated

Bitcoin BTCUSD Tuesday Trade Points
Price action since Sunday's break out has been listless and
lacking any real direction. However there is still bull evidence
mounting - firstly it has not broken down completely after
losing the supporting dynamic yesterday, but has instead
formed a continuation pattern on top of yesterday's flag,
using the same lower parallel as support. That shows
underlying bullish intent is still present so far. But for that to
be confirmed we need to see it break above the upper
parallel - if we see it we can follow long again with stops
under the same parallel by 50 points or so once broken.
Until that happens and it remains within the pattern there is
no clear trade right now.
On downside, should the lower parallel of the continuation
pattern fail at any point today Bitcoin should start to fall
away further and becomes a short once more with stops 50 or
so above the central (of 3) parallel which lies at 8300 right
now.

At some point fairly soon we should get a signal worth trading
again. Until then Bitcoin belongs to the bots and day traders
trading between the parallels- and even they are finding it
difficult now. Patience. The next trade is getting closer by
the hour - we often see an upward burst at 12:30-15:00 as US
wakes up but we really need to see that upper parallel broken
for confirmation that Bitcoin is still positive and to follow long
again from here.

Note

Bitcoin
A nice 300 point break from 8600 to 8900 - after hitting the next fixed resistance line at 8887 - consolidating and can come back more still yet - but it should move up to 9360 later. Raise stop to just under 8750 and if not struck add or buy again once 8910 is broken for rally to 9360 initially.

Note

Up 355 points or so.
Can run stop tight behind it as it may stick here at the line at 8975. But later it should trade higher to 9343 line and maybe higher still.

Note

Bitcoin Coinbase Chart Update

Bitcoin has continued to track higher overnight with a high at
9143 before profit taking at the usual 06:00gmt/02:00est
drive-by time. But that profit taking has only taken price back
to test the dynamic which is supporting this rally from the
outset. Bitcoin stays positive whilst it holds this dynamic but
will flip back to negative once it loses the support of this
line.
On the upside we can see that Bitcoin is getting squeezed
higher into an ascending wedge formation and the next
decision point is just a few hours away now. Ideally it will
grind higher still to the target at 9281-9343 range on Coinbase
where we can look to take profits. It will then have to break
above 9450 to trigger the next long from here, looking to buy
on the next dip back to the 9343 line once broken on the
upside with stops 100 or so lower.
Day traders may prefer to run a trailing stop on longs quite
tight under price as once the next bout of profit taking begins
it should fall back 100 points or so to the 8975 fixed support
line and the junction with the dynamic which is controlling
downside on this rally, so far. Swing longs can place their
stops under this dynamic for now as Bitcoin will only turn
negative once this support line is lost. When that happens,
whether sooner or later, all remaining longs will need to be
closed out and we can start thinking about a short again with
stops above the dynamic when it eventually gives way.
Until then we stay long.

Coinbase Chart Update

Bitfinex Chart Update

Bitstamp Chart Update

Note

Bitcoin Coinbase Update

13:15gmt/09:13est Update
Bitcoin has made a near term double top at 9120-9140 range and since come off 150 points or so back to the first fixed support line and the junction of the dynamic running under price. Day traders who closed out after running tight stops underneath price as it rose through the last rally have bought back off the line. It stays good whilst the dynamic holds. Stops on swings can be raised to just under the spike low at 8964.

14:23gmt/10:23est Update - Bitfinex Feed Update
The pattern here looks quite clear- day traders have identified it too are selling off the last couple of touches on the upside and buying back off the rising dynamic with a perfect spike on the last touch showing day-traders' have the same line drawn in too.
A break above the upper falling dynamic is needed now to achieve the upside target at 9281-9343 range.
And on downside, the rising dynamic must continue to hold for Bitcoin to remain positive today from here. When it eventually gives way,
whether sooner or later, all remaining longs will need to be
closed out and we can start thinking about a short again with
stops above the dynamic when it eventually does give way.
Until then swings can stay long.

Note

Bitcoin Coinbase Chart Update
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sumastardon

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