Bitcoin is in a symmetrical triangle on the H2 chart. Also it is testing and consolidating at the daily support level of 7500-7600$. Possible to see a retracement to the upside especially after this violent move to the downside. Usually I don't like to take trades against the overall trend but this one offers a great risk reward ratio of 2.11
Entry 7611$
Stop loss 7450$
Target 7950$
Entry 7611$
Stop loss 7450$
Target 7950$
Comment:
Forgot to mention the RSI bullish divergence as an extra positive sign. Let's see if the triangle will break to the upside and offer us an entry.
Comment:
Triangle broke to the downside. There was a fake breakout to the upside, price reached 7609.5$ at bitfinex. I had my limit orders set at 7611$ so I was lucky since it didn't get filled but this trade setup also gave me a chance to think about a mistake in my trading process. Since the overall trend was bearish and I d like to try this counter-trend trade it is very important to wait for confirmation of the breakout and not enter aggressively as I would do here. Of course this is just an opinion and I need to backtest it in order to verify it.
Comment:
And by confirmation I mean a H2 candle close above the triangle trendline.