Bitcoin: BTCUSD Money/Bitcoin Never SleepsBitcoin: BTCUSD
A great break, right off the lower parallel around the first hour or so of trading in China overnight. Bitcoin was forced
back to support at 13730 by 20.15 EST during the first hour of trading before rallying powerfully, in a straight line all the
way to the upside target at 15509 - making a high at 15585 before beginning to consolidate. So even on Christmas day
Bitcoin yielded at least 800 points of profit and potentially up to 1600 if around to pick up longs as support at 13740 was
retested and held up well when China opened for business. What other instrument pays out like a cash machine on
Christmas day? ONLY Bitcoin. One on its own. The 'special'one.
Now it's making what apears to be, so far, a tiny flag formation...it either slowly rinses off back to 14648 where it's a buy
with stops 50 to 10 lower - or it's so strong now that we have already seen the second strike on the lower parallel
(see chart) and the next move will be up from here...would prefer the former, where it comes back to test the lower
parallel of flag again quite slowly and making a continuation pattern in process - can be
bought by day traders if it does this with stops under the lower parallel and can be bought again by swing traders if it
slowly unwinds over the next few hours back to 14648 and keeps within the parallels as it does so.
Otherwise, if this little flag has already seen its second strike on the lower parallel that contains it now and can hold out
off the lower parallel of the flag it will show that Bitcoin is still strong, with buying intent still present...it can then rise
back to retest the upper parallel of the flag and can be followed higher once we see the break...could well rise to 15509
again and then come back to retest the upper parallel from above, once broken - and it could also give us a clean break,
as we saw overnight in China...ideally we want to see some solid green candles emerging from the upper parallel (can
trade this by committing half stake on the initial break and keeping the other half dry in case of retest or just wait for
the retest, which might not come, as last night. But there is key resistance not far above the upper parallel - fairly minor
resistance at 15509-15585 first and then the last really significant resistance between here and the highs, at 15814 -
this level keeps coming up in dispatches and extends to 15860. Pretty much everything now depends on this key
defensive barrier erected by bears over the last few days.Bitcoin has to find the buying impetus to break above 15860
and to hold uo there on a retest from above, once broken. In one bound, Bitcoin would be free and should begin to surge
higher if we see this kind of price action develop later - it should rise to 17908 and then to 19009, with. the blue lines
on the chart being the likeliest points at which to expect a small counter-reaction. So swing traders can either buy on the
first break of the upper parallel of the flag or wait/increase only once 15860 has been broken and survivied a retest.
On downside, the lower parallel of the flag/continuation pattern must hold up today on retests, and at all costs 14648
must do so for Bitcoin to remain underlying positive. Any failure at 14648 would therefore tip Bitcoin back into bear
territory, creating a sell off back to 14000 at least - and if this should fail to hold, back to 13456 again .
