BTC has completed a three drives harmonic pattern on the 15min chart, forming three successive lower lows with Fibonacci extensions of approximately 1.62. This may be an indication of temporary trend reversal. This is more for my personal education and evaluation of the success rate of this harmonic pattern. I did not open a trade due to the volatile and unexpected nature of bitcoin.
If I did, I would have opened a long position upon a candle crossing above the bottom of the trading range with the following setup:
Buy: 47040 Stop loss: 46270 Take profit: 49580 (62% retracement of the downward movement)
This is not financial advice and should not be taken as such.
Trade active
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Take profit level reached. If I opened a trade, I would have booked some of my profits here or move my SL up. The local trendline formed by the local highs of the three drives pattern broke as price moved strongly upwards. There is a good chance the top of the trading range will be reached as a second take-profit target (51300). A good indication this might be a true breakout is that more money is moving into altcoins as many alt markets seem to have bottomed out and showed early signs of reversal.
@reza93, Certainly it could. If I entered this trade, I would close at least 50% of my position at the first take profit level because the trend still seems to be downward on higher timeframes. Other potential areas to take profit should it go higher are at 51300 (at the top of the trading range), 54000 and 56000 (high volume nodes where we might expect resistance on VPVR). Again, this is not financial advice so take everything I say with a grain of salt.
reza93
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@jimmyha6, I think if it goes to 50K then in the daily time frame we get an engulfing pattern and that would get us up to 56K