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 rallying below the resistance zone $6556.37-$6512.61, this is a potential sell zone and unless there’s a clear bullish breakout above this zone with a big green candle, I’m waiting for a bounce from this zone to short BTC with my take profit at $6129.85 and st
Technical observation Ether vis currently trading below the resistance zone 230.98-277.84.Unluess there’s a clear bullish breach above this zone, I expect bearish movement towards the support 193.24.On the way downwards the key lines can be seen around 193.24 and 166.25 if price breaks below these
Technical observation Ripple is currently correcting to the zone 0.52039-0.50209, I expect a bounce within it for possible bearish momentum towards the support 0.34661,should there be a breach above the above mentioned zone with a big green candle, wait for a correction to it to confirm a possible