BICO's second attempt?
Updated
In the previous breakout, we see BICO failing to keep up the uptrend and falling below the resistance line.
We now see its second breakout. While the high was lower than the first, its momentum is bigger. IF we see a reversal in 1️⃣ and BoS in 2️⃣, we will enter LONG.
We now see its second breakout. While the high was lower than the first, its momentum is bigger. IF we see a reversal in 1️⃣ and BoS in 2️⃣, we will enter LONG.
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BTC is currently moving sideways and it is uncertain which direction it will move.
What most people fail to do when trading is to react, not predict (including me).
I say this because BICO just touched the resistance line: does this mean we should enter now?
No, we still have to check for complete rebound and BoS.
If the price fails to rebound, we will then look for different opportunities: either waiting for the next entry or shooting for SHORT.
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We currently see a strong momentum.
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We now see a very strong bullish candle - the price is reaching 0.2380 as I write.
However, we do not want to enter just yet: to confirm the reversal, we want to wait for another tall bullish candle like this one or 2 -3 smaller bullish candles.
Then we might be a little more confident about the uptrend.
Reason I am optimistic about BICO is because of its unusual spike of volume.
But we still have to make sure the uptrend is clear - if we see a BoS with strong momentum, then we will enter the trade. And even then, there's no absolute guarantee, just lower probability of being wrong.
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There are few things I want to point out about the current movements.
1. 3 consecutive bull candles would've been nice but unfortunately our last candle was bearish. This is worth recognizing because BTC had a bull candle meaning BICO did not follow BTC's movements.
2. The second breakout had a lot less volume than the first one. Its high is also slightly lower than the first one. The momentum was higher, but this could be because of its speed and aggressiveness.
3. Take a look at these candles before the first breakout: these are the two candles with the highest (hourly) volume and their upper wicks are exceptionally tall.
What do these different sets of information tell us?
Despite the unusual volume spike, BICO is still facing a strong resistance. Sellers are still strong enough to push back the uptrend.
However, I think the uptrend is still possible if it aligns perfectly with the favorable outcome of the election.
If not, I can only imagine the continued downtrend - making a 'double top' pattern.
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Another thing I want to mention - the divergence of lower high and stronger momentum is something to remember. This could mean that it is building up an energy for bigger jump. With the outcome of the election, this could either be a huge jump or a huge failure. Order cancelled
Hello, traders! Unfortunately the second breakout was also a failure, like I mentioned in the previous comments, the seller pressure is very high on BICO. It might shoot for the third breakout in near future, we'll see about the outcome.
Keep in mind that we can make profit from either direction - if price doesn't move our way and we see the opposite pressure being strong, we can always change our strategy and make profit anyway. I'm thankful for this opportunity and also thankful I waited for the confirmation whether than entering right away haha. We never know.
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