Here's how I knew where to buy Bitcoin's latest breakout. BTC formed a very clear ascending triangle over the past two weeks. The breakout point at around 8200 was unmistakable. In my previous post five days ago, I identified a slightly higher entry point, because the pattern was not yet 100% clear. By today, the shape of the triangle was very clear, with a strong near-horizontal resistance line on top, and a steeper support line below the price. The final sign that a breakout was imminent was when trading volume started vanishing to almost nothing! The proverbial "calm before the storm". Of course, an upward breakout was never CERTAIN, which is why I only buy when the breakout actually begins. There is always the possibility that the "storm" will go downwards instead of upwards. We are in a strong bull trend so the likelihood pointed towards an upward move, rather than downward.
I have already taken my profits at the top of this breakout, but I am prepared to possibly buy back in again shortly, if the upward momentum remains strong.
If you want to learn more about straight-forward, actionable analysis like this then my new book "The Crypto Trader" is on Amazon now. There's a link below. I welcome your comments and any questions you may have about my analysis. :-)