Here we can see on the hourly chart clearly how BTCUSD has respected chart pattern formations over the past couple of weeks.
To start with BTC was trading inside an ascending wedge (Orange lines) and the expectation was for this to break down, which it did.
The breakdown of this pattern formed a descending wedge (Green lines), which following chart pattern theory would be expected to break upwards. This has now happened.
The combination of both patterns has now formed a near perfect ascending channel (Blue lines), from which we would expect it to follow until it either breaks to the upside or downside of the channel finishing the pattern.
This means there is a good trade here with a very good risk/reward ratio. Enter a long at current level and target to reach the top of the channel somewhere between $9500 - $10000 depending on timing. Stop loss can be set just under the bottom of the channel currently at around $8300, and stop can be continuously moved up over time as the bottom line of the channel moves upwards.
Current risk 4.6%
Current target 9.1% - 14.9%
To start with BTC was trading inside an ascending wedge (Orange lines) and the expectation was for this to break down, which it did.
The breakdown of this pattern formed a descending wedge (Green lines), which following chart pattern theory would be expected to break upwards. This has now happened.
The combination of both patterns has now formed a near perfect ascending channel (Blue lines), from which we would expect it to follow until it either breaks to the upside or downside of the channel finishing the pattern.
This means there is a good trade here with a very good risk/reward ratio. Enter a long at current level and target to reach the top of the channel somewhere between $9500 - $10000 depending on timing. Stop loss can be set just under the bottom of the channel currently at around $8300, and stop can be continuously moved up over time as the bottom line of the channel moves upwards.
Current risk 4.6%
Current target 9.1% - 14.9%