DrDovetail

Two 1day candle closes above symmetrical triangle & 1day 50ma.

BITSTAMP:BTCUSD   Bitcoin
While I am seeing plenty of bullish signals here overall, the fact remains that on the 1 day chart the bulls have not yet achieved a higher high which is needed in order to fully take control away from the bears and put the reigns in the bulls hands. To put it in perspective, The las time we saw a higher high on the one day chart was early January of last year not this year(shortly after the end of the bull run). Achieving a higher high on the 1 day chart would be one of the biggest signs we could get that the bear market bottom could eventually be in, but in order to get one here, we will need to push price action above the lavender horizontal trendline here at 4117, If we bart back down or see a bearish leg down that is not part of consolidation or a small retracement then we will have once again only formed a lower high on the 1 day chart and the bears wills till have control of the market. So no matter how many back to back bullish patterns we have set up here, If we don't find a way to get above 4117 and achieve that 1 day chart higher high before that next breakdown, all of those potential bull pattern setups could just as easily become invalidated. Thats why as exillerating as all this sudden bullish exuberance feels, it's important to stay grounded, calm, collected, even keeled and copacetic without letting emotion steer our trading strategy. If we achieve that higher high I am very confident we can trigger many of the current bull patterns and also reach their breakout targets however if we bull flag right here...without a higher high there's still definitely a chance for a bart back down that is very wise to be prepared for. Let's hope that the breakout from the green wedge is confirmed and that the green wedge at least gets close enough to it's breakout target to reach the daily higher high. The fact that we have now closed 2 consecutive 1day candles above the top trendline of the symmetrical triangle pattern as well as 2 day candles above the 1 day buy sell line(aka 50ma ) are both very bullish developments we are also now well above the green falling wedge pattern. There is still a small chance the green falling wedge breakout could be a fakeout but we are far enough away rom it that as long as we can close 1 more 1 day candle above the symmetrical triangle pattern I am highly confident we can confirm the breakout of the green falling wedge...only issue with wedge breakouts is they don't always hit their full target and do so considerably less than standard triangle patterns. If we bull flag here I can definitely see an easy break upward as well and the bull flag price target breakout would see good confluence with the green falling wedges target...however because of the potential for a abrt still in play, no higher high yet, and a 1 day and 4hr stoch rsi that are both still heavily overextended. I may still optimistically side slightly with the bulls, but I will be leaving this idea neutral and be fully prepared for any barts and/or failed breakouts.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.