BTCUSD Consolidation Breakout - LONG
Updated
I am analyzing bitcoin on the Kraken exchange - XBTUSD.
After the China ban on Bitcoin news on 9/8/17, the price of BTC saw a modest drop of ~13% from ~4676 to ~4139 (a previous support level). Since then, the price has held steady above this strong support. BTC has been going into consolidation and may soon see a bull break. My target entry will be between 4150-4200. Profit target 1 will be at the resistance of 4728 with a 2nd profit target just under the all time high of 4971. Stop loss should be set below 4100, depending on your level of risk. Trend reversal may be confirmed by a strong bull candle on the daily time frame. RSI will likely not be a good indicator here because of price consolidation, but stochastic RSI can be used.
Please let me know what you think and happy trading!
After the China ban on Bitcoin news on 9/8/17, the price of BTC saw a modest drop of ~13% from ~4676 to ~4139 (a previous support level). Since then, the price has held steady above this strong support. BTC has been going into consolidation and may soon see a bull break. My target entry will be between 4150-4200. Profit target 1 will be at the resistance of 4728 with a 2nd profit target just under the all time high of 4971. Stop loss should be set below 4100, depending on your level of risk. Trend reversal may be confirmed by a strong bull candle on the daily time frame. RSI will likely not be a good indicator here because of price consolidation, but stochastic RSI can be used.
Please let me know what you think and happy trading!
Note
Pattern broke after a lot of negative news yesterday including BTC ban on OTC markets in China, the stock market pull-back, and JP Morgan's "Bitcoin is a fraud" statements.Lessons learned:
Pay attention to the news.
Don't go against the trend.
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