Bitcoin inside of a triangle...of death.
Updated
Hello and welcome to this new update on my Bitcoin analysis! Seems that BTC is having a tough time to breakout and continue what looks to others the beginning of an epic bull run. Even if my vision is quite different from an spectacular rise right now, I want to express just what is going on and not a future teller prediction. Bitcoin has back to range and is clearly in a symmetric triangle, this could take a few days until the market take a decision, but in my honest opinion, it will take less, and just tonight/tomorrow we could see another dump of a few hundreds.
As I said several times, we still have not left the big symmetrical triangle started in December 17th, just have a look:
Crystal clear right? Again for new viewers and followers, I´m using logarithmic scale to project the main lines, that´s why we didn´t start yet bull run that all of us are waiting and that´s why the price had a tremendous reversal at 7960. I´m not relaying in elliot waves just now since it will be just a game of guessing which is right. We could be in wave C from an ABC correction, and if this is right the price will have furthers drops with a couple of profitable bounces, but most probably it will be looking for a support around the 6.8k mark again, however assuming that scenario right now is kind of gambling.
For all of you guys who went short when I said it, congrats, all of us are making money. What´s next? While I think that 10k is not attractive anymore for bulls and the market will be looking for a cheaper price to enter big longs, if you want to be make a high probability trade, just watch for the breakout of the triangle and you´ll get the answer. Note that just on top of the triangle the price will encounter the log line as well, so take care. The actual range could take 1-2 days until the breakout, so entering long at 8900 with a tight SL looks good, as well entering short once the price get to the top of the triangle with another super tight SL. Another wise option is if you are already short, place an alarm and your SL at 9500. If you didn´t take any trade yet, just wait the downside breakout or enter the market at 9500 if the price gets strong enough to break the triangle and the log line.
Levels to enter if the price drop further? I will divide first my positions between 0.382 fibo at 8500 and 0.5 fibo at 8100, with an exit in the next fibo that could be 0.236 at 8976. Then after a healthy profit I´ll wait either for the breakout of the log line or for the main support line at around 6.8k.
Have fun and good luck!!!
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As I said several times, we still have not left the big symmetrical triangle started in December 17th, just have a look:
Crystal clear right? Again for new viewers and followers, I´m using logarithmic scale to project the main lines, that´s why we didn´t start yet bull run that all of us are waiting and that´s why the price had a tremendous reversal at 7960. I´m not relaying in elliot waves just now since it will be just a game of guessing which is right. We could be in wave C from an ABC correction, and if this is right the price will have furthers drops with a couple of profitable bounces, but most probably it will be looking for a support around the 6.8k mark again, however assuming that scenario right now is kind of gambling.
For all of you guys who went short when I said it, congrats, all of us are making money. What´s next? While I think that 10k is not attractive anymore for bulls and the market will be looking for a cheaper price to enter big longs, if you want to be make a high probability trade, just watch for the breakout of the triangle and you´ll get the answer. Note that just on top of the triangle the price will encounter the log line as well, so take care. The actual range could take 1-2 days until the breakout, so entering long at 8900 with a tight SL looks good, as well entering short once the price get to the top of the triangle with another super tight SL. Another wise option is if you are already short, place an alarm and your SL at 9500. If you didn´t take any trade yet, just wait the downside breakout or enter the market at 9500 if the price gets strong enough to break the triangle and the log line.
Levels to enter if the price drop further? I will divide first my positions between 0.382 fibo at 8500 and 0.5 fibo at 8100, with an exit in the next fibo that could be 0.236 at 8976. Then after a healthy profit I´ll wait either for the breakout of the log line or for the main support line at around 6.8k.
Have fun and good luck!!!
····· If you find this report interesting please thumbs up and follow me ······
Note
Wanna see if today is your lucky day? The price is going down again, place a buy order between 8860 and 8900, and set your SL at 8840, a nice move bounce up could happen, however I wont do it, I rather wait for the breakout confirmation to enter a heavy short straight to 8500!Note
Beautiful bearish pennant.
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