Bitcoin: Triangle and How to Trade
The price moves in borders of a triangle chart pattern. It is not the perfect one, but I think we have the right to draw lines in such way. Also, we have to draw 6000.00 the important resistance level and 3850.00 the important support. The price action at these lines and levels will give us more information about how the market will move further.
If the price breaks the lower line of the triangle, it will be a bearish signal. The market will move downward to 3850.00 support, and a breakout below it will push the price to 3000.00 support.
If the price breaks the upper line of the triangle and moves above 6000.00, it will be a bullish signal. The nearest targets for the upward movement will be SMA100 and SMA200.
How to trade?
It is possible to trade from the borders of the triangle using low timeframes. It will be possible to open long positions based on reversal signals from 3850.00 support and the breakout signal above 6000.00 resistance. It will be better to trade with narrow stops. Don't use margin accounts for such trading as it will be able to destroy your capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
If the price breaks the lower line of the triangle, it will be a bearish signal. The market will move downward to 3850.00 support, and a breakout below it will push the price to 3000.00 support.
If the price breaks the upper line of the triangle and moves above 6000.00, it will be a bullish signal. The nearest targets for the upward movement will be SMA100 and SMA200.
How to trade?
It is possible to trade from the borders of the triangle using low timeframes. It will be possible to open long positions based on reversal signals from 3850.00 support and the breakout signal above 6000.00 resistance. It will be better to trade with narrow stops. Don't use margin accounts for such trading as it will be able to destroy your capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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