BITCOIN - Triangle Breakout Confirmation Can Lead To...
Hey-hey!
After my last idea Double Bottom formation, the buyers didn't get the momentum and the power what is needed to push the price upwards. Contrary to that, the price found resistance from the strong area at $3,75-$3,590 (marked as a light-blue long box). After that, the price tried one more time to break through from the strong resistance but now there were other obstacles also which made this area even stronger.
Those "other" obstacles were:
- The 1H timeframe EMA's, 100&200
- The Trendline, which acts as resistance and it is pulled from January 8.
The trendline is quite important because this trendline and the round number support level make together a chart pattern called Descending Triangle. Overall, the Descending Triangle is known as a bearish chart pattern after the breakout confirmation BUT this is still triangle and it has breakout opportunities to either direction! So far those triangle breakouts have shown to us good short-term direction and again SHORT-TERM!
Here is one recent example:
So, currently You should wait for a breakout from the triangle and it may happen pretty soon because the price approaching the triangle tip.
The triangle tip shows that the next bigger move has come within two days and I expect this may happen even sooner.
Confirmations
The bullish confirmation is a little bit higher than the triangle trendline because of the strong area just above the triangle. To be said, the best confirmation is the 4H candle close and if the 4H candle close occurs JUST above the triangle and below JUST below the light-blue area then this is not the mentioned confirmation, because to make a move upwards we have to break above the light-blue area!
So, we have to take down two major obstacles to go upwards, the 4H candle close must be:
- above the triangle trendline
- above the light-blue area and the light-blue area coordinates are $3,750-$3,590, that means the candle has to close above the $3,590. I repeat this because it has to be clear to You!
The first higher target is not far away, it is $3,690 and if it breaks then we might see some decent continuation leg up but this should get confirmed after the $3,690 break.
The bearish confirmation is just a little bit easier and I think we can make an exception here. We need at least 1H candle close, not 4H, to confirm next movement downwards. Sellers have tried multiple times to go below the semi-round number $3,500 but so far those attempts have been unsuccessful, buyers have been alerted and they have pushed the price back above the mentioned round number which shows that there still are some buying power but how much is it left that buying power because the pressure is still massively down. The pressure is coded into the Descending triangle which will be confirmed if we see a candle close below the $3,500. Then we have a breakout downwards from bearish chart pattern and the hell may release from here.
To be said again, bearish confirmation comes after the 1H candle close (ok, even better when they both get a close at the same time) below the psychological number $3,500 which is holding us multiple times and if it finally breaks...
The first bearish targets are:
- The strong area at $3,350
- The 2018 low at $3,129
WAIT FOR CONFIRMATIONS!!
Please, do not forget to support my idea post by hitting the "LIKE button!
Thank You very much!
Have a nice weekend!
Cheers!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
After my last idea Double Bottom formation, the buyers didn't get the momentum and the power what is needed to push the price upwards. Contrary to that, the price found resistance from the strong area at $3,75-$3,590 (marked as a light-blue long box). After that, the price tried one more time to break through from the strong resistance but now there were other obstacles also which made this area even stronger.
Those "other" obstacles were:
- The 1H timeframe EMA's, 100&200
- The Trendline, which acts as resistance and it is pulled from January 8.
The trendline is quite important because this trendline and the round number support level make together a chart pattern called Descending Triangle. Overall, the Descending Triangle is known as a bearish chart pattern after the breakout confirmation BUT this is still triangle and it has breakout opportunities to either direction! So far those triangle breakouts have shown to us good short-term direction and again SHORT-TERM!
Here is one recent example:
So, currently You should wait for a breakout from the triangle and it may happen pretty soon because the price approaching the triangle tip.
The triangle tip shows that the next bigger move has come within two days and I expect this may happen even sooner.
Confirmations
The bullish confirmation is a little bit higher than the triangle trendline because of the strong area just above the triangle. To be said, the best confirmation is the 4H candle close and if the 4H candle close occurs JUST above the triangle and below JUST below the light-blue area then this is not the mentioned confirmation, because to make a move upwards we have to break above the light-blue area!
So, we have to take down two major obstacles to go upwards, the 4H candle close must be:
- above the triangle trendline
- above the light-blue area and the light-blue area coordinates are $3,750-$3,590, that means the candle has to close above the $3,590. I repeat this because it has to be clear to You!
The first higher target is not far away, it is $3,690 and if it breaks then we might see some decent continuation leg up but this should get confirmed after the $3,690 break.
The bearish confirmation is just a little bit easier and I think we can make an exception here. We need at least 1H candle close, not 4H, to confirm next movement downwards. Sellers have tried multiple times to go below the semi-round number $3,500 but so far those attempts have been unsuccessful, buyers have been alerted and they have pushed the price back above the mentioned round number which shows that there still are some buying power but how much is it left that buying power because the pressure is still massively down. The pressure is coded into the Descending triangle which will be confirmed if we see a candle close below the $3,500. Then we have a breakout downwards from bearish chart pattern and the hell may release from here.
To be said again, bearish confirmation comes after the 1H candle close (ok, even better when they both get a close at the same time) below the psychological number $3,500 which is holding us multiple times and if it finally breaks...
The first bearish targets are:
- The strong area at $3,350
- The 2018 low at $3,129
WAIT FOR CONFIRMATIONS!!
Please, do not forget to support my idea post by hitting the "LIKE button!
Thank You very much!
Have a nice weekend!
Cheers!
*This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Comment:
Grrhh.., the first picture has to be this:
Comment:
BULLISH CONFIRMATION!!
The price got a close above the light blue strong area and above the triangle! So, we did it and there is a high chance that the price may go into our first target - $3,690!
Take a second and support my idea by hitting the LIKE button!
Cheers!!
The price got a close above the light blue strong area and above the triangle! So, we did it and there is a high chance that the price may go into our first target - $3,690!
Take a second and support my idea by hitting the LIKE button!
Bullish confirmation: 4H candle close above the light blue area and above the triangle because we don't have seen a 4H candle close above the mentioned area. If it occurs, then we get a sign that buyers have that power to push the price higher + we have broken two important price action criteria.
Bearish confirmation: Here is enough if we get a 1H candle close below $3,500 because 1H candles have tried to break it but those have gotten immediate rejection upwards. So, we can assume that this is enough for sellers if the price got a close below the mentioned level, let's say below $3,490 to be more confirmed.
Definitely, it should be an interesting weekend!
All the best,
Cheers!