Bitcoin Trend Currently Not Clear; Wait For Breakout
Alexandros Yfantis | Oct 07, 2018 05:53AM ET
Bitcoin has been trading sideways in a contracting trading range since February of 2018. Price action has made it clear that key support is at $6000-5600. Price has reached this zone more than six times since February and each time support was respected.
The prices action that followed was a bounce…but each bounce was weaker and weaker making lower highs giving us a technically important downward sloping trend line. Resistance is currently at $6860.
Traders should be patient and wait for the triangle to make a confirmed breakout. We do not know the direction beforehand and there is no benefit to guessing it. We will follow trend and take positions once we see the breakout. Whichever direction the breakout is, we will have lots of room to move.
Upper target is at 12k and lower target around $400-500. Unreal? Maybe…I prefer to stay on the sidelines now.
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