Unless you live under a rock, you witnessed Bitcoin close out its weekly candle with a bang by running all the way just shy of $40000. Now as of this second we find ourselves in the midst of another breakout as the crypto has broken above my second .236 fib level (discussed in an earlier idea) AND broken above the .786 fib of a smaller yet still significant retracement.
This .786 ($38655) is the level we find ourselves now and if it holds it could prove significant as $40k would easily be smashed and a retest of the 41k swing high could be well in the cards.
The .786 fib is a major level in the fact that normally traders take profit at this area and reversals back to the downside often occur. But so far on this early Monday trading session bulls are proving their strength and are attempting to hold this level. It is also noteable that on micro timeframes we painted a bearish descending triangle at critical resistance yet the bulls STILL managed to break bullish out of it.
Keep in mind that it still has not confirmed but it is still worth keeping on your radar as sizing up a possible trade is manageable now since we now have tentative support just below where we are. So a long could be entered here for example now that we know where to put stop losses.
Lastly, beware of a failed breakout due to this being a very small timescale and bullish breakouts of bearish patterns can often trap bulls and reverse aggressively to the downside.
Again, PLEASE USE STOP LOSSES or alerts.
This .786 ($38655) is the level we find ourselves now and if it holds it could prove significant as $40k would easily be smashed and a retest of the 41k swing high could be well in the cards.
The .786 fib is a major level in the fact that normally traders take profit at this area and reversals back to the downside often occur. But so far on this early Monday trading session bulls are proving their strength and are attempting to hold this level. It is also noteable that on micro timeframes we painted a bearish descending triangle at critical resistance yet the bulls STILL managed to break bullish out of it.
Keep in mind that it still has not confirmed but it is still worth keeping on your radar as sizing up a possible trade is manageable now since we now have tentative support just below where we are. So a long could be entered here for example now that we know where to put stop losses.
Lastly, beware of a failed breakout due to this being a very small timescale and bullish breakouts of bearish patterns can often trap bulls and reverse aggressively to the downside.
Again, PLEASE USE STOP LOSSES or alerts.
