Bitcoin looking constructive again. I'm Bullish.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
BTCUSD is finally looking constructive again. We have broken a downtrend line and made it above resistance in the $9,250 area that was formed from the mid-January lows and early-February mini-consolidation. I think the downtrend and horizontal resistance (green shaded zone) breakout have set us up for at least a retest of $12,000. The $12,000 area will present a particular challenge due to the resistance created by the neckline of the topping pattern (major distribution area).

Before I call for all-time highs I want to see how Bitcoin reacts to the $12,000 area. Also, before entering this trade on the long side, either wait for a consolidation on the 1 hour chart or a successful pullback and retest of the $9,200 area of support (green shaded zone).

First Target: $12,000
Second Target: $20,000
Stop Loss: $7,750

Trade active: BTCUSD is about to test the red resistance zone identified on the original chart. I would imagine that we see some kind of A-B-C pullback from this level before moving back to retest it a second time. On the second try we either breakout above it or fail, forming a double top and head back to retest the lows. If we happen to break resistance on the first try, without seeing a pullback first, it would be extremely bullish.


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