Bitcoin (BTC): Tactical Technical Picture Brings Focus to $4,200 – $4,500 Zone

December 24, 2018 / by Bill Noble

We are still waiting for a massive breakout in Bitcoin (BTC).

Our view is that a head and shoulders bottom is morphing into something powerful. Instead of an H&S bottom with a downward sloping neckline, it is turning into a head and shoulders bottom with a rising neckline (Figure 1).

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You won’t find this pattern in a book. It is unusual.

The way to trade it is to wait for a break of the neckline (~$4,200). Then, if there is a retest of that point, and the neckline acts as support, then the ensuing bounce becomes a major buying opportunity. If the resistance of the neckline becomes support, the pattern will be “confirmed.” IF (key word) you get a confirmed breakout from this pattern, the ensuing rally could be vertical in nature.

Bottom Line: Patience is still a painful virtue in Bitcoin (BTC). But a time may come when you can buy BTC and get a lot of upside gratification much like what happened in ETH.  Join me in the Crypto.IQ trading room as we plot the tactics for the possible breakout.