Bitcoin tops out at 10k? - Why I trade EQ patterns
Bitcoin seems to have topped out at $10k
Bitcoin has had a pretty nice rally up since it broke out of the Equilibrium pattern that it formed on the daily charts. As expected it seems to have topped out as it reach the $10K psychological point (not to my surprise).
We are currently looking to retest the resistance level and if we are unable to break we will be heading back down.
Why I trade EQ patterns
You may have seem me posting these tightening patterns often. They are known as Equilibrium patterns (symmetrical triangles). These patterns are quite indicative when it comes to trading and provide high percentage gains as well as taking very low risk positions.
Generally as a rule of thumb these patterns tend to break with the current momentum of the price action, however, there are exceptions to this. Personally for me I see these patterns as being 50/50 and wait on the outside until the pattern breaks to provide a clear trading entry point.
From the image above you can see how I entered into a trade at yellow line around $9300 and exited after at around $9800.
To learn more on EQ patterns here is a helpful link:
https://www.investopedia.com/articles/technical/04/072104.asp
Hopefully that helps you guys out
Happy Trading
Peace
Tom
May be in few coming days, it might cross the 10k line.
Yes, we just dropped down to $9600 so will see if we get any continuation or remain stable from there. If we hold up strong then 10k is within reach :)