As cryptocurrencies, such as Bitcoin, Ripple and Etherium are trend instruments, I offer this trend following analysis using a breakout entry formation that generally has the greatest results.
Timeframes: this crypto analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs.
How it works: basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to buy or sell cryptocurrency. There’re several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/bottom breakout. Even with the two, I only trade double top/triple bottom breakout most of the times and trend line breakout at some other times. Double top/triple top/bottom breakout is more dependable and reliable than the other.
Note, trend line breakout includes also breaks that occur out of various shapes on the cryptocurrency chart such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical Observation BTC is currently trading with an increasing bearish momentum. As I said in my previous analysis, BTC should continue to plunge especially while the price is still above the weekly support line $6,590.82. If you're already in a short position and is not willing to close it, the
Technical Observation Ether is currently trading with a neural bias. Yesterday, the value of Ether touched a key daily support line $555.98 but failed to penetrate below it. This is a potential buy place and as long as it is not breached to the lower side with a big red candle, I expect a long term
Technical Observation XRP is currently trading with a neutral bias. Yesterday, Ripple pulled back slightly to the upper side but is still showing signs of plunging even further. As I said on the Thursday's analysis, unless the price clearly breaks above the three simple moving averages (14, 52, 152