One of the common things I have noticed from my market observation is that it takes three attempts to breakout from a in any direction most of the time. I called this beginner technique "Third Time Lucky" and is best applied to longer term charts. New traders will find it very easy to use. The rules are simple:
1. Every third breakout attempt from a has the best odds to succeed.
2. A valid attempt is one that touches the or must be in close proximity with it.
As an example, I have applied this technique to the Bitcoin chart above.
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For the past 14 hours or so, we have been trying to break the resistance (blue line) level and in the process formed a bullish triangle. We should be seeing an upward thrust upward to 6400 area where another seller wall has been formed. I believe bitcoin is ready to test the green trend line at around lower 6500.
In my previous Wyckoff chart titled "Bitcoin Analysis - Textbook Case of Wyckoff Downtrend to $4,800", I have clearly illustrated the possibility of a bearish continuation that would put Bitcoin down to $4800. This dip we are seeing now is not something "new "or "unexpected".
Given that the triangle has now been invalidated, I will post all my new updates through my Wyckoff chart. See you guys there.
Note: I would be cautious and wise to pull out of this market at this level for the time being and re-enter at lower levels. That's all for today. Happy trading everyone!