Bitcoin breakout levels for long and short trades
In the short term, we have a common consolidation zone that is turning into a triangle. What is nice about this, is we have very clear breakouts on the hourly and 4-hour charts. The zones are highlighted on the image below. Beyond that, in our Hurst Analysis, we see some further areas for a breakout.
The two zones give me low risk entries both long and short. Not only do the entries give a clear break of the triangle, but it’s also a break of the most recent swing high (or swing low) in that range. If we do a break higher, expect a large impulse drive to 7200.
The horizontal lines on the top and bottom of the chart represent various time cycles of Bitcoin using Hurst’s analysis. The yellow line represents the 80-week cycle, green is the 42-week cycle, lime green is the 20-week cycle, teal is the 80-day cycle, blue is the 40-day cycle and purple is the 20-day cycle. The trend lines also represent those same time frames. On this chart, we see that the current daily candlestick is sitting right against both the 20 and 40-day downtrend lines. Right above that zone is the breakout zone of 6671.