Bitcoin Flag Pattern

6 Ogo 2017

If we look at the 1H chart of Bitcoin, we can see a flag pattern. It a short term continuation pattern that shows a small consolidation before the further price movement. We should expect the price breakout through the signal line of the flag pattern and upward movement. Level for placing pending orders for buy must be above the signal line. Stop orders should be placed below 3140.00 level. Profit target is near the possible reversal zone formed by the up border of the ascending channel from the daily chart and 3500.00 resistance level. If the market drops below the flag, we'll see downward movement to the support zone.

6 Ogo 2017

Nota

If you open long trades based on this breakout signal, you should be careful. Watch for price action near 3300.00 level. The market will have to break this level for confirmation further upward movement. If the market reverses from 3300.00, you should be ready to exit and wait for new trading opportunity.

6 Ogo 2017

Nota

The market does not show strong upward movement after the breakout. You can exit from the long trades and wait for new trading opportunity.