Bitcoin stocks in a reversal triangle
Updated
Hi guys,
Based on the latest high formation, it seems a reversal triangle is formed. So, be careful of your long position that we've opened it near the upper line. In the picture you can see two possible paths for the future movement, if we consider a bullish trend is dominated. Here are the situations, 1- the price will go up straightly and hit the upper line around 42300, 2- also it is possible to decline to 35500, in which a support is formed (notice to the WMA and Fibo 0.5 position). Both of these ideas suggest a resistance formation around 42000 to 43000, so it is nice if we set a target at this level and if price increases and breaks this resistance level we can take another long position (noted that this method is suitable for swing/day traders).
Good luck
Based on the latest high formation, it seems a reversal triangle is formed. So, be careful of your long position that we've opened it near the upper line. In the picture you can see two possible paths for the future movement, if we consider a bullish trend is dominated. Here are the situations, 1- the price will go up straightly and hit the upper line around 42300, 2- also it is possible to decline to 35500, in which a support is formed (notice to the WMA and Fibo 0.5 position). Both of these ideas suggest a resistance formation around 42000 to 43000, so it is nice if we set a target at this level and if price increases and breaks this resistance level we can take another long position (noted that this method is suitable for swing/day traders).
Good luck
Trade closed: target reached
finally the reversal triangle upper line was broken.Note
what is more, route one (olive green flash) was dominated
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