An excellent 1300 or 16% rally on Coinbase with an early break-out at 6.30 gmt at 7950 level yesterday (compared to
Bitfinex) has taken Bitcoin to the 9061 line overnight before topping out 24 hours later (at 6.30gmt this morning) as profit
takers moved in. The lower parallel was broken soon after at 8885 and all longs stopped out at around that point - for 935
points profit from trigger-in to trigger-out. Just so long as Bitcoin keeps moving we can scalp her both ways too...Some
will be getting the hang of this better than others and some are psychologically OK with shorting and some are not. If we
can view Bitcoin dispassionately (as a surgeon views a body on an operating table, for example, and not as something we
love - or hate) - we can make points both sides of the argument. So you all know by now how Bitcoin behaves and
most don't even need any help with it any more (excellent) - as it breaks out of the parallels it loses buying interest (the
world and his dog have seen the same patterns develop too). Sometimes the break is clean and fast, as this morning, and
sometimes the break down is followed by what appears to be, at first at least, a failed break, as Bitcoin then tries to rally
again back up the underside of the parallel it has just lost...it can even or reach just below the previous
high...and then falls away again as it should. The exact opposite of a failed break upwards when price breaks the
parallel to the updside and then fails to push much higher to begin with, forcing price back down the parallel it's just broken
above, often as low as the last low at lowest, before it starts to rally as it should when it leaves a continuation pattern. The
exact opposite. Just studying breaks (up and down) and their nature will earn you many fortunes over a life-time. The
exact same principles apply whether trading Bitcoin (super fast) or the Dollar (super slow), or any stock on the market.
So now Bitcoin has busted the lower parallel and triggered a short with stops above the lower rising parallel if so minded.
Can stay short until the dynamic holding down price is broken to upside. Those looking for the next long from here need to
see this same dynamic broken to upside too - it must hold up on any retest or it will fall away again back towards the lows it
has just finished making before it rallies again (as explained in reverse for a break lower). So try to use a stop and
always watch the break (up or down) carefully...is there an increase in apparent, if not it could fail so be ready to
cut and wait for next signal if you see this - do not start waiting and hoping the chart is wrong and your heart is right.
Follow the chart and not your heart and you will learn to trade like a hardened Wall St professional. But without having
to leave your house.
So we have to wait. The parallels have shaped up better on all 3 feeds now and the continuation patterns are fairly clear now - so it's watch and wait for the break higher looking to follow it, carefully, as above. We've had 3 little sections down and this 3rd one is trying to create a little double bottom, showing a loss downside momentum so it could come soon but it can also fail at the upper parallel and the continuation pattern drag out for longer....the stage is set...now we wait
Day traders are buying the lows now and sticking their stops just below the lows of the day for small loss if wrong from here...maybe they are right and if not they make a small loss instead....if the stop is close and you can see it and the reason for it it makes sense...only if you can see the reason though...double bottom in this case, potentially - worth 200 points eaasy if so and 25 -50 loss if wrong
Bitstamp Chart Update - enlarged parallels
Coinbase Chart Same
Bitfinex Chart Update