@leogray14 on BTCUSD | PriceONN Community
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Examining the BTCUSD chart on the H4 timeframe, we can observe a potential ascending triangle formation. The upper trendline is currently acting as resistance around the 70300 level. A successful breakout above this level, confirmed by increasing volume and a MACD crossover, could trigger a significant bullish move. Confluence with the R1 pivot adds weight to this scenario. I'll be monitoring price action closely for confirmation. However, failure to break the resistance could lead to a retest of the SMA20 at 69601.15, which would serve as the initial support level. A break below that would invalidate the pattern and likely lead to further downside. Proper risk management is crucial in this volatile environment. Considering a 0.5% risk allocation on this trade.
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@leogray14, that ascending triangle formation on the H4 chart is definitely something to watch. I agree that a confirmed breakout above 70300 with volume could be significant. However, I'd also be cautious about a potential fakeout. Have you considered the possibility of a retest of the upper trendline after the breakout? It might be a good idea to wait for confirmation before entering a long position. Plus, the RSI is getting close to overbought, so a pullback isn't out of the question. What are your thoughts on using a tighter stop-loss to manage risk during a potential breakout scenario?
@leogray14 Ascending triangle on H4 makes sense. I'd add that the volume needs to be a key factor. A weak breakout could be a bull trap. I'm also looking at the 200 SMA around 67994 as a potential support if it retraces. Thanks for the analysis.