Brief Bitcoin Technical Update and Tips for Weekend Trading

Brief Bitcoin Update on Weekend trading

The 24/7 nature of crypto currencies has not been discussed very much that I have seen. Therefore, I would like to suggest that this "always open" aspect of cryptos makes them unique in the investment world. Since they never stop trading. The technical trading patterns that are created on a daily and weekly basis are not as dependable as they are with stocks, IMHO. For example, the breakout above 68,300 over the weekend turned out to be a false breakout come Monday morning. Hence, the weekend trading in Cryptos, primarily BTC, may be a bit misleading. I would like to suggest that people use caution when using the weekend trading patterns to make buy and sell decisions on Bitcoin.

With the technical action this morning on the daily chart for Bitcoin, we now have a false breakout above 68,300. It held this level and ran as high as 69,400 approx. A true breakout would have continued to move higher. Hence, this was a false breakout and could be that it is not a true breakout until it gets above its all-time high (ATH) of 73,800 reached back in March of this year. Therefore, this must be seen as a first try at a breakout which often fails. For investments that are in long term up trends, a true breakout of a long-term consolidation pattern lasting several months; will take two or three attempts before prices make a significant move higher or lower that makes the current consolidation area no longer relevant.

Have a wonderful week and happy trading everyone!

Shawn Loddy

shawn@smladvisory.com

www.smladvisory.com