Long

BITCOIN : RECTANGLE BREAKOUT pattern - BULLISH

By peace_lover

Updated

TECHNICAL INDICATORS -
1. RECTANGLE BREAKOUT PATTERN :
  bitcoin has broken out of a long rectangle pattern (price has stayed within the rectangle since 17th nov and tested it for 10 times) today with a large green candlestick (strong confirmation) indicating upward momentum
2. PROFIT TARGET :
  98334.37

Trade closed: target reached

Target is hit, trade closed

Note

Although bitcoin had reached the target on 22nd nov around 7:30 am but note that there were false testing of the target level twice before reaching the target, one was on 21st nov around 4:30 pm and another was on 22nd nov around 00:30 am. Both the times the chart created a wick which went very close to the target but came back without touching it and in between it even crossed the upper line of rectangle once temporarily which it had earlier broken out of.

All of these created confusion yet bitcoin had followed the analysis in the end and eventually hit the target successfully and went above.

Amusingly the target level has now started acting as a resistance level and bitcoin has tested this level couple of times already in hourly chart. it is better to consider it as a resistance zone (area between the top created by bitcoin on 22nd nov around 12:30 pm and the profit target level reached) instead of a resistance level to avoid false signals being generated.

peace_lover

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