Bitcoin: Has the Missing Handle Been Overlooked

End of Feb 2018

Bitcoin showed a remarkable recovery since the beginning of Feb 2018. Yesterday's post focused on the rising limb of the on-going trend starting from the 1st week of Feb.

Today, I will focus on upcoming resistance level i.e. 11000 and the formation of cup and handle pattern.

The key resistance i.e. 11000 was breached only once whereas, 10800 resistance was touched several times. A strong and comprehensive break out is a must to consider the current trend as bullish. This will confirm the EMA cross overs as well that I indicated earlier. This is only possible if the current observation, posted yesterday, remains valid i.e. a cup and a handle pattern.

As indicated yesterday - the price targets such as a bearish momentum on this scale - 10300 has to be breached significantly below the set Fib 0.786 level & the price has to trade around 10500 or 10600, which was the case through out the day.

Now we only need to confirm whether BTC will breach through overlying resistance i.e. top of the cup or 11000 or not. If this breakout happens, we shall happily open another long position until the given TP (below) & expect 12000 in coming days. If this scenario fails, the 10400 stop-loss should trigger and one should short to 9551 (Fib 0.618).

Feb 27, 2018 Situation is illustrated above.

Feb 28, 2018 Situation is illustrated above. Note that the development of the cup handle becomes evident along with my target trading plan.

LIVE CHART (TRADING PLAN)

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PS: My investing.com account has been suspended so I am unable to pass my comments there.

Comments

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