BTC/USD The Adam & Eve reversal pattern and how I'll trade it.
Hello everyone,
The last week has been quite uneventful for Bitcoin and indeed the sector as a whole. For that reason, I've been trading stocks for the most part. Especially the energy sector which has seen a comeback of volatility and with it some good trading opportunities.
But I do check in on Bitcoin every day looking for patterns or possible trade set-ups on the higher time frames and I believe we have something here.
The Adam and Eve reversal pattern is something we have seen before with Bitcoin. We have some clear support at 7000$, the biggest hurdle now is the trendline which has served as support and now resistance seen the July top was set. After that we have the resistance zone (orange), extending to 7900$. If we break it we might see a big momentum shift to the upside for Bitcoin.
The chart is drawn, the gameplan established.
3 words: long the breakout.
*Limit buy at 7925$
*Stop-loss at 7700$
*sell at 9025$
Risk/Reward: 1/4.624
Remaining patient is key here. Bitcoin's price might move in different ways (looking at the arrows) before our entry is triggered. If bitcoin falls over this trade set-up is no longer valid.
Thank you for reading, happy trading and remember:
"There's a difference between knowing the path and walking the path" - Morpheus_RED
The last week has been quite uneventful for Bitcoin and indeed the sector as a whole. For that reason, I've been trading stocks for the most part. Especially the energy sector which has seen a comeback of volatility and with it some good trading opportunities.
But I do check in on Bitcoin every day looking for patterns or possible trade set-ups on the higher time frames and I believe we have something here.
The Adam and Eve reversal pattern is something we have seen before with Bitcoin. We have some clear support at 7000$, the biggest hurdle now is the trendline which has served as support and now resistance seen the July top was set. After that we have the resistance zone (orange), extending to 7900$. If we break it we might see a big momentum shift to the upside for Bitcoin.
The chart is drawn, the gameplan established.
3 words: long the breakout.
*Limit buy at 7925$
*Stop-loss at 7700$
*sell at 9025$
Risk/Reward: 1/4.624
Remaining patient is key here. Bitcoin's price might move in different ways (looking at the arrows) before our entry is triggered. If bitcoin falls over this trade set-up is no longer valid.
Thank you for reading, happy trading and remember:
"There's a difference between knowing the path and walking the path" - Morpheus_RED