Bitcoin Technical Analysis for 04/16/2016 – Broken Triangle

BTC has emerged from a broken triangle to the upside, which we had previously written about. Here is the long term picture on the daily chart:

We are above all the downward sloping trendlines connecting the previous highs. On a shorter timeframe 4 Hr chart we also broke out of our recent triangle (see below). Using the height of the triangle the bulls target would be $500 see blue lines for measured moves.

We could use different measurements for the triangle taking us further out and beyond $500 but is the 50% of all the time highs and also has some horizontal resistance. Finally a quick look at the 1Hr chart shows some horizontal resistance levels where traders may look to take profits or get short.

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Even as a Bitcoin Bear I see no technical reason to get short this pair. Even on the hourly chart we had horizontal resistance at $426 which initially capped the pair as we exited the triangle to form a smaller bullish triangle. We broke out of that and have since used the $426 level as support.

Let me know if there are any cryptocurrencies pairs you wish me to have a look at.

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Disclaimer: This is not trading or investment advice.

Matthew22

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Matthew22

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