Hi all, Bitcoin has been out of its ascending triangle for almost three days now. We've seen the false breakout to the upside which has been followed up by a break of the support line of the triangle. Now in normal cases this is clearly bearish. In the case of Bitcoin however, this is a bit more complicated.
In the previous posts i've spend some time talking about how Bitcoin likes to make false breakouts. We see this time and time again. This makes it hard for short term traders to accurately trade Bitcoin without getting stopped out of their positions. Right now I think we're looking at another false breakout for Bitcoin and here's why:
The 21 ema has been a good support or resistance line in either up or downtrends. Right now we see the price being supported by this line. It also seems that the price is slowely creeping up to its previous support. I think this is an indicator that Bitcoin is likely to have a false breakout.
In case Bitcoin closes lower than the 21 ema, it is likely that Bitcoin will hit the green support zone and finds support there. But for now I am switching back to bullish from being neutral for several days.
In the previous posts i've spend some time talking about how Bitcoin likes to make false breakouts. We see this time and time again. This makes it hard for short term traders to accurately trade Bitcoin without getting stopped out of their positions. Right now I think we're looking at another false breakout for Bitcoin and here's why:
The 21 ema has been a good support or resistance line in either up or downtrends. Right now we see the price being supported by this line. It also seems that the price is slowely creeping up to its previous support. I think this is an indicator that Bitcoin is likely to have a false breakout.
In case Bitcoin closes lower than the 21 ema, it is likely that Bitcoin will hit the green support zone and finds support there. But for now I am switching back to bullish from being neutral for several days.