R2BTC2

BITCOIN: How to trade the violent break-out!

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
My plan is to short bitcoin if we break down to the 8500-8700 range. If it acts as a support, I will be a buyer there.

If we break to the upside above 11.3k and I will go long with a target of 20k.

Right now we have been chopped up for the past 3 months and my advise is to only trade the trends and wait in cash during the trading ranges.
The current trading range is very old, and a breakout will be violent! You do NOT want to be caught on the other side. Especially the previous tests of support and resistances happened to be fake-outs.
So my plan is to only trade after the WEEKLY CLOSE candle to wait for confirmation.

The Descending triangle pattern that has been developing is extremely similiar to the one we had in January and it has a strong bearish bios, However with bitcoin you never know.
That's why I will wait for the weekly close, since confirmation is more important than a nice entry, because I am expecting a very large move.

My position remains in cash and will re-evaluate the direction tomorrow after the weekly close. Below 11k we are still in a descending triangle and above it, we invalidate this bearish pattern so that would be a BULLISH signal.
Bitcoin has a history of breaking bearish consolidations violently to the upside, so be carefull!

Thank you for reading, if this helped you please press the thumbs up.

Best regards, Jack

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