BillCharison

BITCOIN, Are You Ready For 20K? Bitcoin is READY!

Long
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
When I look at the Bitcoin 1W chart, I can confidently say that this bullish trend will lead us to the $19000 point. I know that everyone here like Cap with Handle pattern, so I am with you today to give you two pearls of wisdom:
1. Repetition is the mother of learning.
2. A danger foreseen is a danger avoided.

In order to find a Cup with Handle, we need to track ALL 6 RULES:
1. It is not just a bullish pattern, it is a figure that shows a Continuation of Trend, therefore it can be used only during an up-trend.
2. This pattern can be legit only on large timeframes, the minimum bar duration is 4H. If you look for a Cup with Handle on 1H -2H timeframes, it is a waste of time.
3. The depth of the Cup shouldn't be too big: the depth of 70% -90% of the trend isn't normal at all. Cup is a CORRECTIONAL phase and if this correction is too strong, then a trend can be broken.
4. The handle is a weak rebound from the resistance line. The depth of the handle can't contain more than 50% of the depth of the cup. Ideally, the depth of the handle is 35-40%.
5. As you know - volumes indicate market activity. So, when a correction begins (when the price goes down to form the Cup), volumes should fall. But when the price reaches the resistance zone, volumes should increase, this is a sign that the market activity is increasing too. Thus, volumes form an identical cup shape.
6. Finally, you should buy only after the formation of the Handle.

Well, at the moment we can see a bull-run before a difficult correction. At the beginning of the Cap & Handle we can see a decrease in volumes, but as the situation develops, volumes started increasing along with the price line. In addition to the fact that the trend is bullish , we can see the MA and EMA, wrote about them in one of the recent ideas. Now the market, obviously, is in a growth phase.

Thus, if we see a dump down from the ±$19000 level to $11000 - $13000 zone, then be ready to buy after breaking through the 20k level. Starting from the pattern Cup with Handle, you can't buy at the bottom of the Handle Just because this is only the Handle. Here you can make your analysis on other indicators, any support levels, reversal patterns, and many more. A Cup with Handle is actually right only if the Cup has a Handle, remember this!

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