Bitcoin - breakout trade - time for an long shakeout
Updated
Bitcoin price build a bullish trend structure within this chart. In regular this drawn triangle formation is followed by another up wave to at least 5950 $ but crypto market doesn't react in relation to textbook trades. I expect a shakeout of longs before the next up waves starts, the end of the movement will be very decisive for the further course of the market. If the price should close inside or above the important price zone, this would be a bullish signal and we can assume a strong upward movement. Should the market fall below the drawn important support zone and close there for several days, this is a bearish signal and we can expect another test of the $3200 support.
- RSI retraced from heavy overbought area but market remains bullish which is bullish indicator, expect strong up movement if RSI correction ends at the drawn up trend line
- MACD baselines crossed bearish but baselines remained to move sideways which is also bullish indicator
- open long or short after market price close above or under drawn trend line and set take profits at the end of the arrows
- wait for clear confirmation before entering this trade
confirmation = two daily candles close under/above drawn trend line
- RSI retraced from heavy overbought area but market remains bullish which is bullish indicator, expect strong up movement if RSI correction ends at the drawn up trend line
- MACD baselines crossed bearish but baselines remained to move sideways which is also bullish indicator
- open long or short after market price close above or under drawn trend line and set take profits at the end of the arrows
- wait for clear confirmation before entering this trade
confirmation = two daily candles close under/above drawn trend line
Trade closed: target reached
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
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