BTCUSD - Nov 12 Breakout - Daily Perspective - Trade Confidently

BITSTAMP:BTCUSD   Bitcoin / Dollar
285 2 1

Today's Action:
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 bullish bounce.

Look to trade to resistance levels and confluence zones (the orange lines). Confluence is a strong resistance level 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 pivot areas but can be broken too.
Follow the candles more than the confluence zones. Confluence zones do not trump candlestick analysis. They are used to provide a framework during reversals like we are having.

Note the following occurrences:
1) Volume is very bullish , changing from mainly bearish for months
2) 10 EMA crossed 20 EMA bullish signalling the bearish trend is over for now.
3) Again, Higher highs and higher lows indicating change in short term sentiment from bearish to bullish .
4) Bearish Channel was broken out of and served as support until today's breakout.
5) MACD crossed the 0 line signalling sentiment shifting to bullish

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 bull 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 volume and respect the support and resistance levels.

Trade Confidently,
Same Chart but with only 1 Fibonacci range left on chart for clarity. Enjoy!
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