Bitcoin (BTC) - Trading The Breakout!

Updated

Very quick trade setups! Yesterday I posted a more comprehensive analysis. I'll keep it simple. I think this will move pretty soon. Those lines on the left side of the chart, by the way, are all major resistances that we broke in February, including our ATH - November breakdown resistance. This is what caused me to turn bullish on the market. Will turn bearish if major supports are broken.

BUY:
Break of the dark red trendline (MAJOR linear downtrend resistance from the entire bear market!) - or 4100 to be safe.

SELL:
Short term - 4225
Med. Term - 4500-4800
Longer Term - Will have to reassess given price action and how we behave at the log trend resistance (Currently around 4500-4600 on Bitstamp, 4700-4800 on Bitfinex, I believe).

SHORT: Breakdown of uptrend.
CLOSE: Orange horizontal support - 3780 - 3800
Broken triangle resistance turned support - 3600
Big ascending triangle support (reopen short if that breaks) -

This is not financial advice. Just a trade setup I'm seeing, and wanted to post it to see how it plays out, after the fact. What you do with your own money is up to you.

-Victor Cobra

Note

We've slid a little below the support I've drawn, but haven't had any accelerated selling yet. It's possible this dump was fake. If we can get back above the uptrend soon, that would be a good sign that we can move up. However, it does look a bit worrying right now. Definitely best to stay on the sidelines.

Note

Technically, we can also draw the blue triangle support line like this, which would give us a bit more wiggle room. The market looks fairly uneasy right now though.

Note

The reason I didn't draw it that way is because it has less touches.

Note

Now we have 2 touches on the potential uptrend line I just drew. This means there's still a chance for bulls here.

Note

Last chance for the bulls!

Note

If we switch to log view, we are resting on one final possible uptrend line. If we can make a bigger bounce here, that would be a good sign that we can test the 4K resistance again.

Note

Interesting developments! As I have it drawn now, we've clearly broken out. If we hold this candle above the resistance, that would be a good signal to go long:

VictorCobra

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