As we can see, we formed a double top (red arrow) as we had a false breakout from the triangle pattern. we hit my price target (bounced off of the SMA200) and are now at the chronologically end of the triangle. the blue rectangle is a crucial time for the next trend: a breakout can be both, either bullish or bearish.
Signs for a bullish breakout:
How to trade this?
Wait for the breakout to be confirmed. If the Volume continues to grow and the MACD are crossing bullish, this could be the reversal. If we're not breaking the the resistance line, we stay bearish like we still are. Be careful for breakouts with low volume -> bull trap.
Price targets:
When the pattern confirms the breakout, BTC will climb very quickly. Next major resistance is the red area as it is the 38.2% Fibret plus the last top (double top)
Signs for a bullish breakout:
- MACD could gain momentum and crossing bullish. As many bots are working with the MACD, this could give BTC the push it needs to breakout
- Last Candlestick: Possible Hammer! need a following green candle to be confirmed!
- Volume: bull traps like the last false breakout have no significant trading volume. the volume is actually growing
How to trade this?
Wait for the breakout to be confirmed. If the Volume continues to grow and the MACD are crossing bullish, this could be the reversal. If we're not breaking the the resistance line, we stay bearish like we still are. Be careful for breakouts with low volume -> bull trap.
Price targets:
When the pattern confirms the breakout, BTC will climb very quickly. Next major resistance is the red area as it is the 38.2% Fibret plus the last top (double top)
