Before I start this analysis I just like to take a second to say thank you. Thank you all for your overwhelming support and likes. Some of you mentioned you wish you could have followed me months ago. But it's ok my friend, I am always here for you if you are willing to learn and become profitable yourself, instead of always waiting for someone to tell you what to do.
Yesterday, a follower of mine asked me - "TB, how do you draw a trendline. Do you connect between the wick or do you connect between the body". My answer is, I don't do either. There were some detailed explanations as to why that is. If you would like to know, make sure you press the 'LIKE' button and I will write an education post for it if this post receives sufficient likes.
After the discussion I reassessed the current price action of Bitcoin using trendline and breakout, and realised there is a possible buy setup on the daily or 1hr timeframe.
Let's look at the daily timeframe first. The breakout occurred a couple of weeks ago seems to be genuine. It happened after the important support around 6.8k has been tested. In addition, there were congestion & build up before the breakout occurred. So, as long as the low of the breakout candle holds, the breakout trade is feasible. Max position size on this trade is 1% (due to Bitcoin is probably in a transition phase. Transition phase is difficult to trade). Target is around $10600 due to AB=CD.
On the 1hr timeframe, the breakout already happened. It's still possible to enter but the risk reward has reduced significantly. Again, if I were to take the trade, I won't use more than 1% of my total account size (especially when I still have long term investments bought between 6.8k - 7.3K) What's interesting here is that the current BTC chart on the 1hr looks similar to Gold on the daily.
Bitcoin 1hr chart: Gold daily chart:
If this trade fails, the next buy opportunity is at around $7600. I will give you an update when necessary.
Happy Chinese New Year!
**This post is for informational purpose only. I will not be held liable or responsible to you in any way for any loss or damage suffered by you through use or access to this post**
Past analysis (click & play):
Education posts:
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How was it? Did you take the 1 hour trade? Take some profits if you'd like.
Or move the stop loss to $8500 if you wish.
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Congratulations guys! If you are trading the 1hr timeframe, can move your stop loss to $8864.
If you are trading the daily timeframe, the bullishness is still intact, keep holding.
Finger cross that this will be the red envelope my parents didn't give me..... And if it's a big one (from you sir Taiwan Bear), then I'll give my parents red envelope this year instead :)) ... A hail Da Mighty Bear... ^__^ /
Taiwan_Bear
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@bakaro, I didn't receive any red envelop either lol.
As I mentioned in the analysis, the most I would trade is 1%. The better support is still at around $7600-$7700.
Taiwan_Bear
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@bakaro, hope you have enjoyed your red envelope. Make sure you risk manage