ARK/BTC is looking rather interesting in the 4h chart.
Price has been building up an ascending triangle pattern since the first days of December.
Ascending triangle are notoriously bullish continuation patterns, and ARK price has bottomed at around 18400 satoshi on Dec. 7, where it has bounced back, exceeding the high on June 7.
Although I am sure that ARK might as well revisit the previus all time high and exceed it, I am more interested right now in a short term, safer trade.
The MACD is looking like it is turning bullish again, but the Stochastic RSI looks like it will go down, suggesting that ARK price will touch the lower side of the triangle again before breaking the upper side of the triangle.
There are 2 ways to enter this trade:
1) Wait for a pullback at the 78.6% Fib. retracement (around 48000 satoshi), where both the 50-periods SMA and the lower side of the triangle should act as support and propel ARK upwards.
2) Set a stop-order above the 57000 satoshi level, which will confirm the bullish continuation pattern.
Which one of these you choose is depending on your trading style (do you like to buy dips or breakouts?).
The 1st choice is riskier but yields the greatest profits, while the 2nd is definitely safer.
My target is just a little below the 1.618% Fib. extension at 80000 satoshi. This is because this is a round number and therefore it will surely have a sell wall in order book, so it will likely be hard to cross and have strong resistance.
This is not financial advice, this is just my opinion. Any comment is appreciated.
Price has been building up an ascending triangle pattern since the first days of December.
Ascending triangle are notoriously bullish continuation patterns, and ARK price has bottomed at around 18400 satoshi on Dec. 7, where it has bounced back, exceeding the high on June 7.
Although I am sure that ARK might as well revisit the previus all time high and exceed it, I am more interested right now in a short term, safer trade.
The MACD is looking like it is turning bullish again, but the Stochastic RSI looks like it will go down, suggesting that ARK price will touch the lower side of the triangle again before breaking the upper side of the triangle.
There are 2 ways to enter this trade:
1) Wait for a pullback at the 78.6% Fib. retracement (around 48000 satoshi), where both the 50-periods SMA and the lower side of the triangle should act as support and propel ARK upwards.
2) Set a stop-order above the 57000 satoshi level, which will confirm the bullish continuation pattern.
Which one of these you choose is depending on your trading style (do you like to buy dips or breakouts?).
The 1st choice is riskier but yields the greatest profits, while the 2nd is definitely safer.
My target is just a little below the 1.618% Fib. extension at 80000 satoshi. This is because this is a round number and therefore it will surely have a sell wall in order book, so it will likely be hard to cross and have strong resistance.
This is not financial advice, this is just my opinion. Any comment is appreciated.
Trade active:
My buy point was hit, now watching for a breakout of the resistance side of the triangle (it needs to break 57000 satoshi).
Trade active:
Price has broken up the upper side of the triangle! Let's go!!!
Comment:
We are almost there!
The lower side of the triangle is still holding as support though, so we have another chance.
If you have not entered the trade already, a good choice is to set a stop buy order at 63000 satoshi, just above the previous high. This would indicate almost certainly an upward bullish movement to our target.
If you have bought at 48000 satoshi as I did, you have no reason to worry (yet).