Houston, We Have Liftoff! BITCOIN! (BTC)

Hello friends! Welcome to this update analysis on BITCOIN! Let's jump right in. Looking at the four hour chart, you can see that BTC has broken out above all of it's immediate overhead resistance. It has surpassed the 78.6% retrace, the green dashed trendline, the neckline of the inverse head and shoulders pattern, and most importantly, BTC found support on the 50 EMA (in orange.) These are all very bullish developments. Looking at the chart, you can see that the last time BTC found support on the 50 EMA (1/14/18) it rallied up to touch the top of the downtrend channel. We've found support on the 50 again, and you can see that the projected target (for a rally equal to the maximum potential of the inverse head and shoulders pattern) actually extends above the top of the downtrend channel, to around 12,187 (black vertical trendline.) For modesty, however, I think it is best to just target the top of the downtrend channel. BTC has some major overhead resistance to contend with along the way. Specifically, the 200 EMA (in purple,) and the 61.8% retrace. For educational purposes only, this breakout is a technical buy signal. An effective stop could be placed just below the neckline of the head and shoulders pattern. The reason why I would select that level, is because head and shoulders patterns can occasionally produce throwback moves, in which they retest the neckline after a breakout. In this case, a break back below the neckline would be a negative sign, and it would be wise to exit a long position at that point. For now, there is no evidence of a throwback, so we will just have to be aware of it, as we ride BTC higher.

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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-JD-