• +971(4) 430 6868

  • info@d1stp.com

  • 09:00 - 18:00

  • Sunday to Friday

5 December

By Amir El Araby

Category: Technical Analysis

 458       61       41             

Bitcoin: Trade the Euphoria Pattern !

The daily studies of Bitcoin show how prices have soared during the last two months achieving sharp acceleration particularly after stabilizing above 8000.00 territories.

Bitcoin offers a technical pattern that appears with bubbles. The parabolic curve pattern requires discipline when you trade it, as traders should focus on how to catch accurate reversal signs.

Back to our chart where we notice the possibility of drawing the pattern typically, but we are still looking for affirmed reversal candlestick pattern in addition to a signal of weakness to appear on RSI14.

We will place a sell stop entry below the nearest classical support of 10565.00, as a break of which will assist momentum indicator to present the required signal.

Actually, there are some trading strategies by which we can define the technical target for parabolic curve pattern, but I prefer to place the take profit at (base 4).

Base 4 resides in the 8000 boundaries, while stop loss should be placed above the closest resistance formed on the chart.

Dear readers, we will update you with more levels and explanations for this trade if the price behaviors adopt favorable reactions to the technical pattern.

Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).