What is Bitcoin doing and where is it going next?
Updated
Hi guys, welcome to my latest Bitcoin Analysis!
On the 4H time frame we can see how Bitcoin went into a long channel since its all time high on December 17th. The confirmation of the channel took place on March 5th by tryzing to break through it, which failed but therefore got confirmed as a channel line. The latest spike caused a breakout which makes the upper channel line act as a strong support now.
The indicators such as RSI and Stoch RSI are cooling down after the fast rally from 6800 to 8000 in 30 minutes. After the cooldown, which might include a retest of the support line, we might see another rally up.
As I commented on the chart, the H&S pattern is still valid, since we did not break below 6000, where the top of the head formed. So the next major resistance is at the point, where the right shoulder was supposed to break out but got rejected by the bears at around 11600.
How to trade:
If you decide to trade BTC, here is how I do it (no advice):
Patience is your friend in this one: Based on my experience the support will be tested again. This is a good entry point to go long with a stop loss slightly below the support line. The risk is very low and I have a strict gameplan with my stop-loss. If we break below the support line, that would be a good entry to open a short position with a stop-loss slightly above the support.
If you liked my TA I'd appreciate a like, follow and your thoughts in the comment section.
Take care of yourselves!
M.S.
On the 4H time frame we can see how Bitcoin went into a long channel since its all time high on December 17th. The confirmation of the channel took place on March 5th by tryzing to break through it, which failed but therefore got confirmed as a channel line. The latest spike caused a breakout which makes the upper channel line act as a strong support now.
The indicators such as RSI and Stoch RSI are cooling down after the fast rally from 6800 to 8000 in 30 minutes. After the cooldown, which might include a retest of the support line, we might see another rally up.
As I commented on the chart, the H&S pattern is still valid, since we did not break below 6000, where the top of the head formed. So the next major resistance is at the point, where the right shoulder was supposed to break out but got rejected by the bears at around 11600.
How to trade:
If you decide to trade BTC, here is how I do it (no advice):
Patience is your friend in this one: Based on my experience the support will be tested again. This is a good entry point to go long with a stop loss slightly below the support line. The risk is very low and I have a strict gameplan with my stop-loss. If we break below the support line, that would be a good entry to open a short position with a stop-loss slightly above the support.
If you liked my TA I'd appreciate a like, follow and your thoughts in the comment section.
Take care of yourselves!
M.S.
Note
BTC is in a symmetrical triangle since yesterday. As symmetrical triangles are usually continuation patterns we could expect a breakout soon. The price objective here is at around $8540. If we break below the triangle, a retest of the support line should be expected.
A breakout to the upside should happen on higher volume. If it doesn't, it might be a false breakout.
Note
We broke out of the symmetrical triangle on heavy volume as shown on my previous post. It looks like BTC is correcting for a little bit now before continuing the uptrend. There is still a high chance, that we will retest the support line.
I am currently out of any trades since I'm waiting for the next confirmations. Updates are coming soon!
Disclaimer
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