yarr

Bitcoin - A Bullish Pennant & The Supports Getting Bought.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin is forming Pennant Chart Pattern on the daily timeframe . It is known bullish continuation pattern and activates after the breakout. What is common thing to see in this pattern? Volume diminishes when the price moves closer to the peak. The breakout is confirmed once it takes down MA200 and $8.400 resistance level . Volume is crucial part of the breakout and it should start expanding along with the breakout to give reliance to it.

What’s interesting here is that last night Bitcoin dropped below of $8.000, retested support zone ($7958 - $7.665) and bottom level of the pattern but the dip was quickly bought which signifies that demand is high in this area.

What’s the strategy in here?
The strategy is pretty much the same with all chart patterns and the strategy is dependable on your risk management which one you choose to use. You can buy the breakout itself (which is often more riskier) or retest of breakout. So when the Pennant Chart Pattern is unleashed and starts showing signals that supports upward movement such as volume starts expanding, then these two strategies can be utilized.

The measured target price for this pattern is around $9.591 but I’d keep eye on 8927 level as well.
Break below of the uptrend support invalidates this pattern.

In my past reports I have wrote several times about the importance of the unleashed bullish momentum on the larger scale and the importance of it. Why does it matter? It matters because the price is more likely to hold support levels (dips are getting bought) and break through of resistance levels easier.

Conclusion
On the daily timeframe it’s important that the price manages to break through of MA200 because that’s what most of the people are monitoring and the breakout is likely to bring more confidence to the investors / traders.
Oscillators are resetting on the 4h timeframe and this could give enough space to the price to push higher.
It's good to acknowledge the risk involved with this trade as when the price climbs higher and not seeing any major retraces it's going to add more risk in to your trades.

Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information or courses let me know and I’d be more than happy to help you! Feel free to DM me in here or in my Twitter!


Things to Remember:
  • Stop-loss orders are strongly recommended.
  • Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
  • Do your homework before investing.

DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.

Yarr

Comments

Here are my targets, I have been perfectly predicting all BTC movements so far :)

Reply
Thanks alot
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