BTCUSD - Ascending triangle in formation. Bulls pushing back!
Friday trading review, each Friday I intend to post about a probable outcome I've seen in the market. Stay tune and follow me if this information is indeed useful.
Coming back at you guys with another probable scenario. After bitcoin hit well into its overvalued territory on the daily RSI we seen a minor retraction as expected to just below $7000.00.
The bulls then fought back and regained price action to $8269.2, with RSI again Budging over the 70 mark we see the price fall again.
This morning after another retraction we have another solid green bull candle before the Daily candle closes. This has formed a nice triangle pattern, and bitcoin has a good history of strong ascending triangle breakouts.
There are 3 situations that could arise. I'm going to list them in order that I foresee most likely to least likely.
-Price Action moves up to 8200.00 again then falls as RSI still looking close to oversold for another small retraction and rally to finally breakout with and entry into the markets set by stop-limit order at 8353.00.
-Price Action retests 8200.00 and breaks through the overhead resistance and ignores oversold RSI to an expected and moves to 9850.00 before another retraction and a new high set.
- Price forms a triple top and fails to breakout with a large retraction back to $5700.00 or worse.
Being the past success of triangle breakouts I will risk 4% on breakout at 8353.00 then set a very close trailing stop when RSI nears 85. A stop around half of the Daily ATR to secure earned profits.
Below is a snapshot of on my opinion on most likely scenario.
If you have anything you agree or disagree with please comment and let me know your opinion, this is an environment for bettering each other with open minds.
I'm not a financial adviser and none of this is financial advise. These are simply my views and opinions and not to be acted on without careful consideration of ones situation and outlooks on the market.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
