BITCOIN | Breakout But Haven't Seen a Retest Yet!
Hi,
The recent days have brought a bit bullish volume into the crypto market. To talk about the mother-ship-Bitcoin then the rejection came from quite a good support area. The accumulation started at around 40k which has played an important role almost during the whole year. 40k has worked as a resistance, strong and powerful candle breakthroughs (strong and powerful candles show the strength of the area, basically it needs a heck of volume to break it) are the signs of strong price levels.
At the moment, it worked nicely as a support and we may have also a breakout from the bullish chart pattern called Bull Flag. Okay, not we may have but we have it but is it possible to trade that breakout? Yes, it is!
After the breakout from Bull Flag or short-term counter-trendline (the black one), we haven't seen a retest of the breakout area. Not a single timeframe that I watch for (1H, 4h, Daily) isn't made a retest yet. So let's wait for it...
If the 40k was a strong horizontal area, then luckily we have one a bit closer too, considering the current price, and it matches perfectly with the pre-mentioned retest area. It stays around 45k (marked as the higher "white" horizontal area) and be ready to start loading your positions around that price area. Plus there are some important Daily EMAs (classical 50, 100, and 200) that should add a bit of strength and reliability to the retest area which should work as a support level.
Regards,
Vaido
The recent days have brought a bit bullish volume into the crypto market. To talk about the mother-ship-Bitcoin then the rejection came from quite a good support area. The accumulation started at around 40k which has played an important role almost during the whole year. 40k has worked as a resistance, strong and powerful candle breakthroughs (strong and powerful candles show the strength of the area, basically it needs a heck of volume to break it) are the signs of strong price levels.
At the moment, it worked nicely as a support and we may have also a breakout from the bullish chart pattern called Bull Flag. Okay, not we may have but we have it but is it possible to trade that breakout? Yes, it is!
After the breakout from Bull Flag or short-term counter-trendline (the black one), we haven't seen a retest of the breakout area. Not a single timeframe that I watch for (1H, 4h, Daily) isn't made a retest yet. So let's wait for it...
If the 40k was a strong horizontal area, then luckily we have one a bit closer too, considering the current price, and it matches perfectly with the pre-mentioned retest area. It stays around 45k (marked as the higher "white" horizontal area) and be ready to start loading your positions around that price area. Plus there are some important Daily EMAs (classical 50, 100, and 200) that should add a bit of strength and reliability to the retest area which should work as a support level.
Regards,
Vaido
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.