Bitcoin's Intermediate Bullish Horns point toward ~$9400
On 26 May 2019 at 1600 hrs Universal Time,
BTCUSD
(Ref: Bitfinex; against the US Dollar) had a bullish breakout from the ~$7975 price point terminating at approximately ~$8787.
At the time of this writing we can see here on the 4 hour chart that price is sitting at around ~$8758 and has been in a narrow downward consolidation since the 26th (3 days ago).
This, to me, is obviously a bullish pattern but the size of the wicks is slightly concerning and points toward uncertainty. I imagine that this is related to the amount of time we have been in this intermediate uptrend. Regardless, we are riding a strong upward support, so any voluminous break to the downside could spell the beginning of a retracement which is beginning to feel a bit overdue.
When we measure this pole, we get an increase of 10.2% or $812. This will factor into my target of course. If this indeed plays out as a continuation my target range of ~$9271 - ~$9394 should be reached by around 30 May 2019 at 0800 UTC (Given the resistance up at $9393.90).
All this considered, I've place a discretionary stop-loss range of just under ~$140, giving the wicks a little wiggle room, and a risk to reward ration of about 1:5.
BTCUSD
(Ref: Bitfinex; against the US Dollar) had a bullish breakout from the ~$7975 price point terminating at approximately ~$8787. At the time of this writing we can see here on the 4 hour chart that price is sitting at around ~$8758 and has been in a narrow downward consolidation since the 26th (3 days ago).
This, to me, is obviously a bullish pattern but the size of the wicks is slightly concerning and points toward uncertainty. I imagine that this is related to the amount of time we have been in this intermediate uptrend. Regardless, we are riding a strong upward support, so any voluminous break to the downside could spell the beginning of a retracement which is beginning to feel a bit overdue.
When we measure this pole, we get an increase of 10.2% or $812. This will factor into my target of course. If this indeed plays out as a continuation my target range of ~$9271 - ~$9394 should be reached by around 30 May 2019 at 0800 UTC (Given the resistance up at $9393.90).
All this considered, I've place a discretionary stop-loss range of just under ~$140, giving the wicks a little wiggle room, and a risk to reward ration of about 1:5.
Trade closed: stop reached:
Well it looks like bitcoin's infamous #JudasCandle has returned to the arena. We did indeed begin to breakout to the upside as I foresaw, but the target of 9400 was not met. We made it to about 9108 before the bears took hold and pushed it back down into the trend channel where it has remained and reconfirmed previous support levels. At the time of this writing, bitcoin is scraping the bottom of channel at 8415 with threats of running back up at other deviations to test within the channel. IMHO this may be an indicator of a weakening bull run. In fact, at this point, I'd be very weary of seeing a continuation to the upside. We need a healthy retracement at this point in order to maintain sustainable growth over the long run. Let's hope Judas is content with his shillings for now.