Bitcoin in symmetric triangle and Oscillators bullish divergence
Bitcoin is setting up a possible bounce on the H4 chart. Price has formed a symmetric triangle with 3 touches on the uptrend line and 3 touches on the downtrending line. Most oscillators (except the MACD) are showing bullish divergence. I m gonna use the triangle breakout as an entry signal around 6600$. Since we are in a bear market and I want to take a trade against the overall trend I am willing to wait for a breakout confirmation on the H1 chart. So I need an hourly candle to close above the downtrend line of the triangle (and I d like to see significant volume on that candle). If the price goes up too fast before I get my confirmation, I will miss the trade and I m fine with that (need a risk reward better than 1:1) .
My target is the previous support level of 7000$ which was never retested during the current move. I might use a lower target of 6900$ if we are close enough to the downtrend line and the 50% Fib retrecement.
My target is the previous support level of 7000$ which was never retested during the current move. I might use a lower target of 6900$ if we are close enough to the downtrend line and the 50% Fib retrecement.
Comment:
Breakout never happened. Triangle seems to break to the downside so I consider this trade setup as invalid. This could be a nice sell signal for some traders but I am not shorting cryptocurrencies for many reasons.