BitcoinLong
BTC Ascending Triangle - My Fav Pattern
Updated
BTC has established an ascending triangle (bullish) formation. On an anecdotal note, i find this pattern to be pretty reliable. Yes, if the resistance (top line) of the triangle is broken, a significant pop typically ensues (see my previous chart on ETH). However, if support (ascending line) is broken, you can bet price will head to the downside. In summation, a breakout from the pattern in either direct, is a clue of future price action.
Some additional thoughts on technical analysis... Many analysts are of the opinion that price action in the form of wicks are not significant enough to build a chat pattern on top of. But this will vary depending on your price interval. A wick on the daily chart may be a full candle on the hourly chart and thus, it doesn't make sense to be absolute on this. I am of the option that you can decide to use or ignore the wicks. Charting is an art, not a science. A chart pattern does not guarantee price action, it helps you understand it.
If you are looking to enter BTC for a swing trade keep these numbers in mind... 19,880 is resistance. Price action above that may lead to a larger run to the upside. 18,600 is support AT THE MOMENT, but really, it changes over time (ascending line). Next support line i see is 17,700. I have a stop loss set up somewhere in between those 2 support lines.
Have fun trading. Don't play with more than you can afford to lose.
Donations
BTC: 1Dghss1nXSiXc1V4T1DgaA2qPB9ARWkY2A
LTC: LY3zKiHLkBpo3NWKq2piUdvm7a8eLL7EfS
Some additional thoughts on technical analysis... Many analysts are of the opinion that price action in the form of wicks are not significant enough to build a chat pattern on top of. But this will vary depending on your price interval. A wick on the daily chart may be a full candle on the hourly chart and thus, it doesn't make sense to be absolute on this. I am of the option that you can decide to use or ignore the wicks. Charting is an art, not a science. A chart pattern does not guarantee price action, it helps you understand it.
If you are looking to enter BTC for a swing trade keep these numbers in mind... 19,880 is resistance. Price action above that may lead to a larger run to the upside. 18,600 is support AT THE MOMENT, but really, it changes over time (ascending line). Next support line i see is 17,700. I have a stop loss set up somewhere in between those 2 support lines.
Have fun trading. Don't play with more than you can afford to lose.
Donations
BTC: 1Dghss1nXSiXc1V4T1DgaA2qPB9ARWkY2A
LTC: LY3zKiHLkBpo3NWKq2piUdvm7a8eLL7EfS
Note
Breakout to the downside landed right at our 2nd support line. My stop was hit. Just watching price action at this point.
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