CoryMitchell-CMT

Bitcoin cup and handle; 50%+ upside potential, if breakout

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin is forming a cup and handle pattern. Handle is well developed.

The price needs to break out of the handle, to the upside. This hasn't happened yet.

The handle is a triangle. Volatility is contracting and that is a good thing. Volume is also dropping off. A big move often follows super low volume with this pattern.

A move above $9,355 breaks the smallest daily consolidation.

Another entry is a break above the $9,480 (rounded) July 8 swing high.

Stop loss goes below the consolidation. The "roomiest" stop loss is to place it below $8,830. The downside is the reward:risk drops off as well.

This pattern has the potential to run 50%, putting a target near $14,000.

If holding this for the longer-term, the next target is the $19,000 region.

Holding for the big gains isn't required. Getting in and out with smaller reward:risk trades, like 4 or 5:1, is also acceptable. For example, if your risk is 5% (the difference between entry and stop loss), an exit with a 25% profit is 5:1. A solid trade as well.
Cory Mitchell, CMT
Stock and forex trading insights at https://tradethatswing.com/

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