BitcoinLong
BTCUSD - Know when to HODL. Breakout Zone Approaching.
Updated
BTCUSD is approaching a critical break out attempt. My idea focuses on being patient as a trader. Price still needs to work it's way through two correction support and resistance trend lines that are showing obvious signs of resistance to the current bullish move. Textbooks say that because the neckline of the forming inverse head shoulder is sloped downward the degree of "bullishness" is not as high if the neckline were to be sloping upward. Which said neckline is obviously being patterned after the prior support line of the correction cycle the market is trying to reverse. Because these trend lines are all converging in a nice beautiful crossover in the near future, I would argue that a break out of these correction trend lines would gain more bullish support once a break happens. Along this pattern of thought, wait through the impending chop zone of deciding whether or not the market wants to keep going upward. Getting in and out during a chop zone is a quick way to destroy your account.
The downside. It would be foolish to not consider the downside risks as well. Don't develop tunnel vision as a trader thinking that the only possibility is up. The daily candles are showing bearish signs currently and whale traders love to mess with weak traders, especially in potential reversal and break out zones. I went back and looked at prior reversal points and BTC likes to retest or retrace the initial wave off bottoms. If you are the more calculated and cautious type, scale in your entry starting with a percentage each time price "dips" or retraces. And then the remaining size of your position once a breakout is confirmed.
The downside. It would be foolish to not consider the downside risks as well. Don't develop tunnel vision as a trader thinking that the only possibility is up. The daily candles are showing bearish signs currently and whale traders love to mess with weak traders, especially in potential reversal and break out zones. I went back and looked at prior reversal points and BTC likes to retest or retrace the initial wave off bottoms. If you are the more calculated and cautious type, scale in your entry starting with a percentage each time price "dips" or retraces. And then the remaining size of your position once a breakout is confirmed.
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Successful break of the previous trends. It came earlier than charted which is fine. You need to look at charting with flexibility and not absolutes. I would suspect the next move is to retest the old trends and then off to the next support turned resistance.
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