jacobcanfield

Mirror Mirror On The Wall... When Will Bitcoin Break Out For All

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
In my last analysis, I showed how Bitcoin has the potential to break out to the 61.8% pull back level that we've seen it do time and time again.

If you haven't had a chance to read that analysis, check it out here:

In this analysis, I am seeing an exact mirror image flip set-up of the descending traingle at the $6,000 support level from 2018.

In this case, we've got an ascending triangle , which are typically bullish patterns.

Something to watch out for though is a 'long' leverage liquidity grab where they stop hunt long traders.

We saw this exact same move at the $6,000 level before the big move down where a majority of short traders were liquidated out of their positions.

We also hit a 261.8% extension from the swing low and swing high before the break down move which has given us the support at $3400 and is typically a strong reversal point on downward moves for Bitcoin .

If the structure doesn't break down and close below the triangle on the daily chart , we could still see a target at the $5380 level. I used the exact same candlestick set-up from the break down to give an idea of what this might look like (including a stop hunt and liquidity grab for longs.)

Getting some cheeky buy orders at that $3450-$3500 zone may be a savage tactic in case we do get that wick down.

Invalidation of this structure would be a break and close below the triangle support on the daily chart .

Full trade set-up looks like this as well as a potential long buy if we do get that break down wick.

What do you guys think? Are we going to continue following this out until May before we get a break out, or do you see something else in the cards?

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