Timeframe: 240M
Main Scenario: The rate increased significantly and it has finally managed to make a valid breakout above the major downtrend line. The breakout needs confirmation before we can go long again on Bitcoin. I've told you in the last weeks that we may have a larger upside movement only if the rate will make a valid breakout above the major downtrend line.
Maybe the rate will come back down to test and retest the broken downtrend line, the 150% line and the upper median line (uml) of the minor ascending pitchfork before will move towards the sliding line (SL) and the LML of the major ascending pitchfork.
Alternative Scenario:
Only a false breakout above the downtrend line will send the rate down again and it will invalidate a further increase.
Entry/Stop Loss/ Take Profit: We can go long from above the 7820 former higher. The Stop Loss can be placed right below the 7221 level. The first upside target it will be at the outside sliding line (SL) and the second one at the LML, somewhere at the 9400 psychological level.
Duration: 1-2 weeks, it depends on how long it will take for the rate to test and retest the broken levels.
Consolidation/Ratification level: If the rate it will decrease again to test and retest the downtrend line, then we can move the stop loss below the new low.
Warning Level: If the rate it will fail to stabilize above the broken downtrend line and somewhere above the upper median line (uml) and if it will drop and stabilize below the median line (ml) of the minor ascending pitchfork, then we can get out because the rate could start a significant drop again.
Risk Management: Risk/Reward Ratio: 2.39
Main Scenario: The rate increased significantly and it has finally managed to make a valid breakout above the major downtrend line. The breakout needs confirmation before we can go long again on Bitcoin. I've told you in the last weeks that we may have a larger upside movement only if the rate will make a valid breakout above the major downtrend line.
Maybe the rate will come back down to test and retest the broken downtrend line, the 150% line and the upper median line (uml) of the minor ascending pitchfork before will move towards the sliding line (SL) and the LML of the major ascending pitchfork.
Alternative Scenario:
Only a false breakout above the downtrend line will send the rate down again and it will invalidate a further increase.
Entry/Stop Loss/ Take Profit: We can go long from above the 7820 former higher. The Stop Loss can be placed right below the 7221 level. The first upside target it will be at the outside sliding line (SL) and the second one at the LML, somewhere at the 9400 psychological level.
Duration: 1-2 weeks, it depends on how long it will take for the rate to test and retest the broken levels.
Consolidation/Ratification level: If the rate it will decrease again to test and retest the downtrend line, then we can move the stop loss below the new low.
Warning Level: If the rate it will fail to stabilize above the broken downtrend line and somewhere above the upper median line (uml) and if it will drop and stabilize below the median line (ml) of the minor ascending pitchfork, then we can get out because the rate could start a significant drop again.
Risk Management: Risk/Reward Ratio: 2.39