Bitcoin Breakout Revisited

Previously I posted about a potential breakout in Bitcoin. Price is subsequently somewhat lower.

While a breakout still isn't guaranteed, it's important to remember most price moves have a small move in the opposite direction to test and establish support or resistance and the direction from which support/resistance is being tested can be an important indication in itself.

As an example in the first week of January Bitcoin broke a lower trend line. Then price tested precisely the intersection of the lower and upper trend line from below and was rejected. A swift decline ensued.

From our recent potential breakout price has come down to test precisely the intersection of the lower trend line and upper trend line from above. Such tests should not be unexpected. A breakout to the upside is still not guaranteed but a rebound from a test of the intersection from above would actually be much more bullish than the initial breakout because it would be tested and proven.

This is not financial advice. It is an exploration of methods to confirm the ongoing bias of particular chart patterns. If you seek professional financial advice seek out the assistance of a registered professional.