In this technical analysis I share my current views on BTC/USD. I tried to make the chart as self-explanatory as possible, but feel free to reach out or drop a comment if you have any questions.
Isn't that a head and shoulders pattern, bearish signal?
lmulhare
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@jakesea, It will be if it breaks the H&S neckline, but cryptocurrency traders are irrational. :)
Trading-Guru
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@lmulhare, Do you think irrationality invalidates technical patterns then?
UnknownUnicorn6123709
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@Trading-Guru, If the patterns aren't validated yet, then of course irrationality can invalidate anything.
lmulhare
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@Trading-Guru, Many factors can invalidate technical patterns. The extreme volatility of crypto suggests to me that those trading it are less risk averse. :)
Trading-Guru
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@jakesea, hey you're right! Thanks for sharing. I hadn't really picked that up yet actually. So this means that if the price cannot break through the resistance and moves to support we'd potentially looking at a very very sharp downwards movement
shahid_arshad
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@Trading-Guru, so it would be better to wait for conformation at support before entry. I am impressed with your TA, very simple and direct to the point
Trading-Guru
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@shahid_arshad, Exactly! I would always buy really close to support if you're going in with a long position. This can be either directly after a breakout (where the old resistance now just became support) or during a downturn where the price approaches the support from the top. Also in this idea you can see the two blue circles that highlight possible entries are both directly above an horizontal zone. Using this technique gives you the best risk-reward on your trades
ProjectSyndicate
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appreciate your effort. great setup for bitcoin traders.