Potential Next Trade!

Hello All!

Bitcoin has been been forming an ascending triangle by creating multiple touching points below the triangle (circled in yellow) which are the support points, and multiple touches above the triangle (circled in blue) which are the resistance.

Although, this pattern usually has an upwards bias, it can be traded in either direction based on the break out/down direction and it indicates that bulls are fighting the bears and and ultimately there shall be a winner either to the upside or the downside. The pressure increases when the break out/down occurs because of the following:

1) There are a lot of traders recognizing this pattern on this chart and betting on one side or the other.
2) Stop losses are set above the triangle for short trades or below the triangle for long trades which usually triggers at market price. This creates a big movements when they are triggered.
3) When price moves in either direction at a fast rate, this creates a domino effect causing a lot of new comers to buy in out of greed or sell out of fear.
4) We are breaking a wall of pressure that hasn't been broken before either to the upside or to the down side.
5) Volume Indicator (the yellow lines on the right side) shows a lot of volume pressure at around 36k (which confluences with the triangle formation) indicates a strong resistance (lot of selling pressure) and much less volume below the triangle which could mean it could sink that wall is broken.

So, If we break a 4 hourly candle above the top orange line at the top of the triangle (around 36k), we can open a trade and close it before 41k. This target is based on the next resistance level.

However, if we break a 4 hourly candle below the triangle (marked with yellow circles) , we can short sell and close the trade before 27k. This target is based on the next support level.

I hope this helps you make a trading decision,