So, the chart looks good, but we still have work to do. You can see that just above, is the 61.8% retrace, which could provide initial resistance. We need to surpass the 618, and complete the right shoulder at the neckline. From there, we'll be looking for a subsequent breakout to the upside. There is some heavy resistance at the 50% retrace (12,738,) so it will be interesting to see how BTC reacts, should it make it's way up to that level. The target rests at about 16,475. If we see a confirmed breakout, and a break above the heavy resistance, the target is likely to be reached. Don't let that target distract you though, from the heavy resistance. That will be a critical level to focus on, and it could impact the validity of the upside target.
For educational purposes only, you could go long at this point, if you wanted to be aggressive, with a stop loss below the pink , and perhaps below the 50 & 200 EMAs, around 9950. That would put you at a max loss of about 7%, while having the top of the channel (in pink) and the 50 & 200 EMAs, as supportive protection, between the current price action and your stop order.
On the downside, if we see BTC roll back over, and break down into the channel again, that would be a negative sign. You can see that there has been a lot of chopping around on the 50 & 200 EMAs. Since another breakout has occurred, we want to start to see those moving averages act as support. If we continue to violate them, it will be a sign of sustained weakness.
Looking at the , we can see that it was low on the breakout. Low breakouts can fail, so pay very close attention to any reversals here. Overall, BTC is moving exactly as anticipated, and now we just need to monitor the continued development of the pattern. This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
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