A great break, right off the lower parallel around the first hour or so of trading in China overnight. Bitcoin was forced
back to support at 13730 by 20.15 EST during the first hour of trading before rallying powerfully, in a straight line all the
way to the upside target at 15509 - making a high at 15585 before beginning to consolidate. So even on Christmas day
Bitcoin yielded at least 800 points of profit and potentially up to 1600 if around to pick up longs as support at 13740 was
retested and held up well when China opened for business. What other instrument pays out like a cash machine on
Christmas day? ONLY Bitcoin . One on its own. The 'special'one.
Now it's making what apears to be, so far, a tiny ...it either slowly rinses off back to 14648 where it's a buy
with stops 50 to 10 lower - or it's so strong now that we have already seen the second strike on the lower parallel
(see chart) and the next move will be up from here...would prefer the former, where it comes back to test the lower
parallel of flag again quite slowly and making a continuation pattern in process - can be
bought by day traders if it does this with stops under the lower parallel and can be bought again by swing traders if it
slowly unwinds over the next few hours back to 14648 and keeps within the parallels as it does so.
Otherwise, if this little flag has already seen its second strike on the lower parallel that contains it now and can hold out
off the lower parallel of the flag it will show that Bitcoin is still strong, with buying intent still present...it can then rise
back to retest the upper parallel of the flag and can be followed higher once we see the break...could well rise to 15509
again and then come back to retest the upper parallel from above, once broken - and it could also give us a clean break,
as we saw overnight in China...ideally we want to see some solid green candles emerging from the upper parallel (can
trade this by committing half stake on the initial break and keeping the other half dry in case of retest or just wait for
the retest, which might not come, as last night. But there is key resistance not far above the upper parallel - fairly minor
resistance at 15509-15585 first and then the last really significant resistance between here and the highs, at 15814 -
this level keeps coming up in dispatches and extends to 15860. Pretty much everything now depends on this key
defensive barrier erected by bears over the last few days. Bitcoin has to find the buying impetus to break above 15860
and to hold uo there on a retest from above, once broken. In one bound, Bitcoin would be free and should begin to surge
higher if we see this kind of price action develop later - it should rise to 17908 and then to 19009, with. the blue lines
on the chart being the likeliest points at which to expect a small counter-reaction. So swing traders can either buy on the
first break of the upper parallel of the flag or wait/increase only once 15860 has been broken and survivied a retest.
On downside, the lower parallel of the flag/continuation pattern must hold up today on retests, and at all costs 14648
must do so for Bitcoin to remain underlying positive. Any failure at 14648 would therefore tip Bitcoin back into bear
territory, creating a sell off back to 14000 at least - and if this should fail to hold, back to 13456 again .
Bitcoin Breakouts Last 24 hours
Lowest Green arrow: A nice clean break - having spent so long
testing the rising parallel it takes off at 03.33 GMT/22.33EST
Middle arrow: Another nice clean break, comes back over the
next 6 minutes to 14295... 15 points above the breakout level
Upper arrow: price surges to underside of the line at 14648,
falls away again by 210 points and then spends 12-15 minutes
testing the line from the underside before surging through,
opening the next long from here to target at 15509.
These were beautiful breaks - and pretty typical that it
should doisplay it's power and beauty in this way when most
of us were enjoying down-time. Remember that Kit Kat advert
with the guy waiting around for ever for the Pandas to mate -
and he turns his back, and wham, it's over. That's Bitcoin. The
nature of the beast.
Not all breaks are so sweet or trader friendly. These were.
3 on the trot. On Christmas day. Bitcoin is way cooler than
Santa Claus. And every bit as real. I saw him in Maceys.
And i saw a Bitcoin cash machine in Manchester too.
For day traders a buy off the 15602 blue line and down to the lower small parallel of the top flag (getting pretty technical here but this is what the chart is doing right now, (flexing, strutting, showing off) but only up to 15800-15814 range. Then we have to see this taken back by bulls and hold on retest...can move sideways a while now, sliding along between the two blue lines before it eventually is most likely to burst out to upds=ide , amybe as the fixed and dynamic meet at 15814 level later - it shoulkd then spurt to 16447 to begin with...watch out for the original parallels of yesterday - whichhave been extended and have clipped the high today, bang on. Not good. My bad. Too busy watching dumb football patterns to see this until too late. Der
Flipping between support/buy point at 15814 and resistance above at 15940 - Long story short...and this has been long today, once the blue line is taken at 15940 it should pick up buyers and rally back to 17908 initail target and higher still later tomorrow (stopos for longs about 100 below the break level)