Here's how I knew where to buy Bitcoin's latest breakout. BTC formed a very clear ascending triangle over the past two weeks. The breakout point at around 8200 was unmistakable. In my previous post five days ago, I identified a slightly higher entry point, because the pattern was not yet 100% clear.
By today, the shape of the triangle was very clear, with a strong near-horizontal resistance line on top, and a steeper support line below the price. The final sign that a breakout was imminent was when trading volume started vanishing to almost nothing! The proverbial "calm before the storm".
Of course, an upward breakout was never CERTAIN, which is why I only buy when the breakout actually begins. There is always the possibility that the "storm" will go downwards instead of upwards. We are in a strong bull trend so the likelihood pointed towards an upward move, rather than downward.
I have already taken my profits at the top of this breakout, but I am prepared to possibly buy back in again shortly, if the upward momentum remains strong.
If you want to learn more about straight-forward, actionable analysis like this then my new book "The Crypto Trader" is on Amazon now. There's a link below. I welcome your comments and any questions you may have about my analysis. :-)
By today, the shape of the triangle was very clear, with a strong near-horizontal resistance line on top, and a steeper support line below the price. The final sign that a breakout was imminent was when trading volume started vanishing to almost nothing! The proverbial "calm before the storm".
Of course, an upward breakout was never CERTAIN, which is why I only buy when the breakout actually begins. There is always the possibility that the "storm" will go downwards instead of upwards. We are in a strong bull trend so the likelihood pointed towards an upward move, rather than downward.
I have already taken my profits at the top of this breakout, but I am prepared to possibly buy back in again shortly, if the upward momentum remains strong.
If you want to learn more about straight-forward, actionable analysis like this then my new book "The Crypto Trader" is on Amazon now. There's a link below. I welcome your comments and any questions you may have about my analysis. :-)
THE CRYPTO TRADER: How anyone can make money trading Bitcoin and other cryptocurrencies
Published by Harriman House.
This link should take you to your local Amazon site.
getbook.at/TheCryptoTrader
Published by Harriman House.
This link should take you to your local Amazon site.
getbook.at/TheCryptoTrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
THE CRYPTO TRADER: How anyone can make money trading Bitcoin and other cryptocurrencies
Published by Harriman House.
This link should take you to your local Amazon site.
getbook.at/TheCryptoTrader
Published by Harriman House.
This link should take you to your local Amazon site.
getbook.at/TheCryptoTrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.