In my previous ideas I've mentioned that we are in a descending triangle and we're at the apex of it. At this very moment, we have broken out above the descending triangle HOWEVER the breakout is NOT confirmed.
Just like how we broke to the downside of the triangle two days ago and everyone declared Bitcoin dead, we ended up going right back into it and breaking to the upside. It is VERY possible that this is a fake out and we go back inside the triangle.
The beautiful thing about breakouts like this, is that you almost always get a second chance to buy. This is why you never ever buy a break out as soon as it happens, always, ALWAYS wait for a retest. If you don't get a retest, it's rare and that's life. Wait for the next corrective low to enter if we don't get one.
Tomorrow UTC side (Sunday) we should see a red candle that will put us around $6,150. This is where you want to buy Bitcoin with a stop loss you are comfortable with. For this break out, I would recommend a stop loss around $5,968.
Just like how we broke to the downside of the triangle two days ago and everyone declared Bitcoin dead, we ended up going right back into it and breaking to the upside. It is VERY possible that this is a fake out and we go back inside the triangle.
The beautiful thing about breakouts like this, is that you almost always get a second chance to buy. This is why you never ever buy a break out as soon as it happens, always, ALWAYS wait for a retest. If you don't get a retest, it's rare and that's life. Wait for the next corrective low to enter if we don't get one.
Tomorrow UTC side (Sunday) we should see a red candle that will put us around $6,150. This is where you want to buy Bitcoin with a stop loss you are comfortable with. For this break out, I would recommend a stop loss around $5,968.
Comment:
To find a good take profit target, I would refer to 2014 when we broke out of a similar descending triangle. We ended up simply extending the current descending triangle as you can see in the image below. A lot of similarities.
Comment:
The retest may come next week on the weekly chart. Regardless, if we can close the week above this descending triangle, and have a successful retest, then I believe $7,530 becomes the target. As you can see in this chart, we hit this price range on the weekly chart as support and resistance 3 times in the past.
Comment:
As you can see, we reached my buy target, but 1 week later than I anticipated. If you had the patience and kept your buy order open, you would be up over 15% right now.
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.