We got another attempted breakout around 17:00 est which
was enough to trigger a long shot as Bitcoin moved above the
central parallel (it was the upper line at this point in time) at
around the 8380 level on . It then moved up to the
test the first line of resistance at 8545 and a just above
before it once again failed. Not great. But stops should have
been moved up to at least break even and really should have
been moved up to just below 8500 here to protect the
position. Now we have a another break out just underway.
Buy again with stops under the parallel or can wait for a
retest of the parallel it has just left - need to see some
pick up and then once it breaks above 8170 it should
attract more buyers still.
Right on resistance line here...if long stick stop high up under it in case it fails- just under 8050....has to break above 8160 and hold here to attract more buyers so be careful with this stop
The break stays good whilst within the parallels and tuyrns negative agin if 8170-8150 is broken below from here . Raise stops to under the parallel and at lowest to under 8150 - can short back to 7800-7758 if 8150 gives out. But if so use a stop.
Once again Bitcoin needs buyers here to stay on course
Bitfinex Chart Update
Coinbase Chart Update
Longs have either been closed out earlier on the break of the lower parallel or are still open with stops below 8150 - although quiet and no volumes there's a battle raging and the conflict is creating two potential outcomes on the chart. The bull case stays good whilst 8170-8150 holds up and whilst it does Bitcoin is still capable of rallying up the underside of the lower parallel it has recently broken below. It's hard to see far Eastern buying providing much of a boost but it can still move up higher in the interim but it's a grind. Stops under 8150 look correctly placed for now. As the battle continues there are two opposing patterns forming...
Every screen across the globe is flashing Reverse head and Shoulders on one side and a head and shoulders on the other. These two opposing patterns neatly describe the conflict that is quietly raging under the surface. On the bear side they have a 50% rally from 6k to 9k - every Gann and Tesla number now looming large on the price scales. They also have the fact that Bitcoin has lost the parallels now and it's just a matter of time until it loses 8150 and begins to fall away to complete the head and shoulders at 7758 ... if so we have a new minimum 1326 point downside target created at 6449. Suport at 7575-7550 will likely create a counter rally back to 7758 neckline before it falls away faster once 7250 gives way.
If we see this kind of price action develop later it will try to rally from 7758-7750 again when tested - maybe back to 8150 -8170 which should then become resistance if the head and shoulders top is to have a chance of completing overnight.
But unless and untill 8170-8150 gives way Bitcoin will not lie down and cannot be shorted. If and when it comes it can be shorted with stops 50 to 100 higher. But until then the Bulls are still, just, in control here - and that Reverse Head and Shoulders above here has a breakout level at the recent highs...and it's big and well formed RHS too, way bigger than the HandS top (1326) with 3373 points of upside potential to a target at 12351 but only if the 9050 -9080 range can be broken above and held ...
Either way we should get a good trade out of the outcome. Use stops sensibly on all positions. You know where the lines are, so you you have a good idea where to raise and lower stops to in the event of the next trigger.
Bitstamp Chart with opposing HandS top...hence the conflict here as bulls fight bears to a standstill