DIGITAL ALPHA UPDATE - BTC The Triangle Dance
Updated
What is up everyone! BTC is a little indecisive which is causing alts to cool off a little. This means we need to figure out what is going on with bitcoin! So, what is up?
(TLDR: Read it, otherwise I'll tell you up, then down, but maybe down then up...)
Several things need to be addressed to give folks a good prep for the week ahead. To give you a quick summary, BTC appears to be in a symmetrical triangle, which allows for a continuation of the previous trend if the pattern does not fail - therefore, price needs to break out of the triangle upwards. The overhead resistance around 10k is a major hurdle and is what most traders are waiting for. That is it in a nutshell.
So the long story...
The chart on the left is based on 1hr candles. You can see the symmetrical triangle with 2 touches on the top and 2 touches on the bottom. Volume is showing a decreasing trend on the bottom. Combining this with lower highs and higher lows, we have ourselves looking at a triangle. There are 4 possibilities, which are all outlined in the chart above. If the price drops below the lower resistance AND only drops less than 5% THEN goes up, we have a very profitable trade forming. Closing positions would be recommended around the 10k resistance. Two other scenarios are what we would expect with this formation. One breaks upwards and climbs, the other bounces down, back up and breaks upwards. Both would give validity towards this formation with similar closes around 10k. The last possibility is a failed formation and bitcoin dropping down past the 5% mark. This would be a "get out" moment and wait for 8.1k or less.
I keep referring to the 10k mark and in order to explain we need to look at the chart on the right. It is a 1 day candle chart. Bitcoin is oversold and based on the chart on the left we are showing a likelihood of price rising. We are checking all the boxes for an upward scenario. So the next checkpoint to look at is for overhead resistance, which is that 10k mark. We have two touches on this blue hashed line, meaning we have overhead resistance formed. Lower support is 6.5k. This is our current range and if price tests 10k be aware that a re-visit to 6.5k will be in the cards. Look at my previous write ups using fractals throughout Bitcoin history as to why a triple bottom is very likely! (Click Here)
This should help you trade for the next week. Alts are pretty much hands off at the moment unless traders gain more confidence in bitcoin price. This would require a breaking of 10k and testing that blue hashed line as support...let's hope for this. A 10k break a re-test as support would make this Bear a full on BULLLL.
- DA BULL signing off.
Don't forget to share, thumbs up, and join our telegram. We are up over 60% on the month on our educational portfolio. We try to show how to successfully manage a Large-Cap Portfolio in cypto-land - something nobody else does.
(TLDR: Read it, otherwise I'll tell you up, then down, but maybe down then up...)
Several things need to be addressed to give folks a good prep for the week ahead. To give you a quick summary, BTC appears to be in a symmetrical triangle, which allows for a continuation of the previous trend if the pattern does not fail - therefore, price needs to break out of the triangle upwards. The overhead resistance around 10k is a major hurdle and is what most traders are waiting for. That is it in a nutshell.
So the long story...
The chart on the left is based on 1hr candles. You can see the symmetrical triangle with 2 touches on the top and 2 touches on the bottom. Volume is showing a decreasing trend on the bottom. Combining this with lower highs and higher lows, we have ourselves looking at a triangle. There are 4 possibilities, which are all outlined in the chart above. If the price drops below the lower resistance AND only drops less than 5% THEN goes up, we have a very profitable trade forming. Closing positions would be recommended around the 10k resistance. Two other scenarios are what we would expect with this formation. One breaks upwards and climbs, the other bounces down, back up and breaks upwards. Both would give validity towards this formation with similar closes around 10k. The last possibility is a failed formation and bitcoin dropping down past the 5% mark. This would be a "get out" moment and wait for 8.1k or less.
I keep referring to the 10k mark and in order to explain we need to look at the chart on the right. It is a 1 day candle chart. Bitcoin is oversold and based on the chart on the left we are showing a likelihood of price rising. We are checking all the boxes for an upward scenario. So the next checkpoint to look at is for overhead resistance, which is that 10k mark. We have two touches on this blue hashed line, meaning we have overhead resistance formed. Lower support is 6.5k. This is our current range and if price tests 10k be aware that a re-visit to 6.5k will be in the cards. Look at my previous write ups using fractals throughout Bitcoin history as to why a triple bottom is very likely! (Click Here)
This should help you trade for the next week. Alts are pretty much hands off at the moment unless traders gain more confidence in bitcoin price. This would require a breaking of 10k and testing that blue hashed line as support...let's hope for this. A 10k break a re-test as support would make this Bear a full on BULLLL.
- DA BULL signing off.
Don't forget to share, thumbs up, and join our telegram. We are up over 60% on the month on our educational portfolio. We try to show how to successfully manage a Large-Cap Portfolio in cypto-land - something nobody else does.
Trade active
Get ready for the action at 9.9k-10.2k, should get turbulent right in there. Some are saying a Adam & Adam Double Top...I cannot refute that yet. Volume is higher on the first peak than the second. What is interesting is that the 20k peak looks pretty similar... Again, just be prepared.Trade active
We are headed towards the blue hashed upper resistance again. If we break we will test 10k. If we get a rejection here, it will prove a very good shorting opportunity. Note how the 11.7k rejection responded earlier. Be sure to take profits in alts before this potential rejection occurs.Trade closed: target reached
We updated the idea now that BTC is getting ready to test the blue hashed support.Read here:
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