Here is the quick Monfex market analysis update.
After the symmetrical triangle formed, we saw a sharp break downwards. I listed the break in my last TA here:
BITCOIN: Getting ready to break
The break downwards was somewhat expected, but now we are starting to see two new trends take shape. The most recent one is an upward trend that may have some power behind it due to the hammer candle located on the chart. This hammer candle indicates a strong rejection and possibly a reversal of the downward pattern.
The fast EMA (100) is starting to make a sideways move, and it could make a bearish crossover is the price goes below its support at ~$11,100. The RSI is showing some healthy momentum, but the volume is very low at this point
What To Watch
If the price follows the current trend, we could see another $12,000 test in a couple of days. If the price falls below the bottom of the current trendline, we could be in bear country.
What To Consider
Consider a buy close to the bottom trend line of about $11,300 and a sell right before the $12,000 mark. If the price falls below $11,100 it may be time for a stop-loss sell as it could be going past the support line and continue on with the downward trend established after the triangle.
Active Trade Signal:
- Buy at $11,300
- Stop-loss at $11,000
- Take-profit at $12,000
- Risk/reward ratio: 1:2 (attractive)
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