BITSTAMP:BTCUSD Bitcoin / Dollar
Traded a breakout back to the 100SMA and confluence level. Higher High and Higher Low was established today.
First confluence zone was reached and is now retracing back from.
What to do: Look for a rest or retracement of some sort and enter after you confirm the bounce.
Look to trade to resistance levels and confluence zones (the orange lines). Confluence is a strong found using Fibonacci analysis as shown.
I left the Fibonacci lines on the chart. The colored green and red zones help show the ratio overlap used to establish the confluence zones.
Expect slow downs at the confluence areas. Bracket trades work well at confluence zones. They are usually areas but can be broken too.
Follow the candles more than the confluence zones. Confluence zones do not trump analysis. They are used to provide a framework during reversals like we are having.
Note the following occurrences:
1) is very , changing from mainly for months
2) 10 crossed 20 signalling the is over for now.
3) Again, Higher highs and higher lows indicating change in short term sentiment from to .
4) was broken out of and served as support until today's breakout.
5) crossed the 0 line signalling sentiment shifting to
Next Targets are:
-$470 (last confluence zone)
-$500 (Round number)
-If we close above $530 then it is much more likely to see a longer term trend set in and continue likely back up to a 100% retracement of the largest Fib ratio shown to $650-$675.
If this entire breakout today fails then a sideways channel could be forming for the near term with lots of internal trade possibilities.
For now, follow the and respect the levels.