Bitcoin Price Poised To Break $400!

It’s that time of day again, and in this evening’s Bitcoin price analysis (intraday), we are going to shuffle things around a bit. Specifically, we are going to introduce a classical technical charting pattern into our strategy, which normally restricts itself to horizontal trend line placement.

So, as we head into this evening in Europe, and tonight’s Asian session thereafter, how are we going to bring this into play, and where will we be looking to get in and out of the markets? First up, take a quick look at the chart to get an idea of what we mean.

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As you can see, we have our standard range as defined by in term support at $398.04 and resistance at $388.27. On top of this, however, we have also defined a triangle, which has formed over the last couple of days and within which the Bitcoin price has traded consistently. Triangles can be great to trade as – when price breaks through them – they can be the catalyst behind sharp upside or downside momentum across the whole scope of tradable financial assets – Bitcoin notwithstanding.

If we see a break through the resistance line of the triangle (i.e. the downward sloping trend line) it will be a bullish signal, and will put us on high alert for a break above in term resistance (range). If, subsequently, we get this break, it will signal entry (without us having to wait for our usual close above resistance) towards an upside target of 410 flat. Broken triangle support also offers us a nice defined risk management level, with a stop placed at the point of the triangle break.

The exact same concept applies to the downside trade, with the exception of the stop placement. Triangle support is a little too far away from range support to give us an attractive risk profile, so on this one, a stop at 390 and a target of 382.56 works well.

Charts courtesy of Trading View