Bitcoin Symmetrical Triangle Nears Apex - $20k Target
According to the weekly chart, Bitcoin appears to be moving towards the apex of the Symmetrical Triangle. If we break out to the upside of the Symmetrical Triangle, the target becomes $20k. The target comes from the the length of the widest point of the triangle, which you can see in the highlighted price range on the chart above.
Symmetrical Triangles are continuation patterns 75% of the time, and 25% of the time they are reversal patterns. This opportunity certainly presents better odds than any Casino will give you, but still trade with caution. I would suggest an entry near the bottom of the triangle. If you are lucky enough to get a wick that pushes through the bottom of it (say ~$6,950) that would be the perfect entry. Take note that there is also strong support at $6,600 so if this trade fails, $6,600 might still hold it up.
Symmetrical Triangles are continuation patterns 75% of the time, and 25% of the time they are reversal patterns. This opportunity certainly presents better odds than any Casino will give you, but still trade with caution. I would suggest an entry near the bottom of the triangle. If you are lucky enough to get a wick that pushes through the bottom of it (say ~$6,950) that would be the perfect entry. Take note that there is also strong support at $6,600 so if this trade fails, $6,600 might still hold it up.
Comment:
There is an alternative scenario to consider here. The purple trendline shown on the chart above may be broken (it does appear to be in the picture) and this recent uptrend was just a retest of this trendline to confirm that it's now resistance. If we fall here, expect this purple line to become major resistance in the future.
Comment:
We have closed below the triangle so if you were trading the triangle, your stop loss would have been hit unless you chose the aggressive stop loss of $6,600. We are now at another pivotal moment as you can see in my idea here:
Comment:
Descending triangle. We'll see if this one holds. If trading this, buy as close to 6k as possible. Support seems to be from the 5.7-6k range. Place a stop below 5.7 and only risk what you can afford to lose, it could still go a lot lower, but there are not too many opportunities to buy at the bottom of such a large pattern.
Comment:
Bitcoin in 2014. Look familiar?
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
Note, we are now back in the uptrend. Expect the greatest resistance to be at the top of this channel.