BTC/USD - Breakout Or Trap?
Bitcoin, in spite of breaking out from the side-wards resistance, doesn't appear to have done so with much strength. The overall market sentiment seems to be weak. Yesterday price broke the side-wards resistance line. It initially started off with a HUGE green candle, which by candle closing, closed with a HUGE wick resulting in a shooting star signal, which implies general rejection of the up move. This is why it's so important to ALWAYS wait for a retest after a breakout before investing, because only the noobs buy the breakout and they get burned.
As it stands, price is in the bullish territory, but in reality, how important is that when the candles are showing a possible bull trap? This is something that needs to be determined by making some conditions.
There's a few conditions to be met in order to fully confirm the up move. They are:
1) Bitcoin must NOT close below 6560 again in order for the bullish breakout to stand.
2) Price must break above 6660 (If taking an aggressive stance), or 6749 (Conservative trading strategy) and RETEST it for a safe buy opportunity. Now there's the huge shooting star signal, we now need to break the top of the shooting star range before taking a buy. By not waiting, it's too risky.
There's also a condition that qualifies for a short.
1) Break below 6550 would break side-wards support which negates ALL the higher lows recently. It'd be a nice short opportunity.
Where do YOU think price is headed? Leave a comment with a chart and let's share our thoughts!
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Thank you for your support.
As it stands, price is in the bullish territory, but in reality, how important is that when the candles are showing a possible bull trap? This is something that needs to be determined by making some conditions.
There's a few conditions to be met in order to fully confirm the up move. They are:
1) Bitcoin must NOT close below 6560 again in order for the bullish breakout to stand.
2) Price must break above 6660 (If taking an aggressive stance), or 6749 (Conservative trading strategy) and RETEST it for a safe buy opportunity. Now there's the huge shooting star signal, we now need to break the top of the shooting star range before taking a buy. By not waiting, it's too risky.
There's also a condition that qualifies for a short.
1) Break below 6550 would break side-wards support which negates ALL the higher lows recently. It'd be a nice short opportunity.
Where do YOU think price is headed? Leave a comment with a chart and let's share our thoughts!
I never ask anything from my supporters, but I do have a small favour to ask of you guys... If you see comments in the comments section that are trolling/insulting to me, or any other person who's contributing to the comments section, then please Flag/Report their comments right away so we can get rid of people that aren't contributing to this site in a good way. Let's work together to make this site a better place for everybody. :-)
Please leave a LIKE and FOLLOW. I'd really appreciate it.
Thank you for your support.
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