The triangle consolidation of Bitcoin is inching towards an end, and I believe now is an optimal time to (experimentally) open positions on the one direction with better odds.
As previously analyzed, the major resistance (thickness of the bearish cloud body) above is about to be reduced to an all-trend low, forming an all-trend-high probability of the price going up and penetrating the bearish cloud. From the current day-level ichimoku cloud chart it is also clear that the conversion line (blue) has been a strong primary support during the past 10+ days, preventing the price from dropping to a lower low. Considering the still-abundant space between current price level and the lower side of the cloud, it is safer to assume that the probability a major upward trend is higher than the other direction, albeit the overall bearish triangle consolidation pattern (also marked on my chart above).
I have placed my long position orders at several price points from $6551 downwards, and placed my stop-loss at $6381 (could be moved further down to around $6301 as I am also concerned of a potential bearish trap before the begin of the overall upwards trend), generating a relatively healthy risk/reward ratio of around 2.4.
As marked on the chart, the target of the 1st-stage upward attack is the bottom of the bearish cloud ($6900~$7000), once that target is reached, we will then discuss the 2 possibilities of the 2nd-stage direction.
As previously analyzed, the major resistance (thickness of the bearish cloud body) above is about to be reduced to an all-trend low, forming an all-trend-high probability of the price going up and penetrating the bearish cloud. From the current day-level ichimoku cloud chart it is also clear that the conversion line (blue) has been a strong primary support during the past 10+ days, preventing the price from dropping to a lower low. Considering the still-abundant space between current price level and the lower side of the cloud, it is safer to assume that the probability a major upward trend is higher than the other direction, albeit the overall bearish triangle consolidation pattern (also marked on my chart above).
I have placed my long position orders at several price points from $6551 downwards, and placed my stop-loss at $6381 (could be moved further down to around $6301 as I am also concerned of a potential bearish trap before the begin of the overall upwards trend), generating a relatively healthy risk/reward ratio of around 2.4.
As marked on the chart, the target of the 1st-stage upward attack is the bottom of the bearish cloud ($6900~$7000), once that target is reached, we will then discuss the 2 possibilities of the 2nd-stage direction.
