Bitcoin [BTC] has broken out above $12,000 for the third time this year after a long built of anticipation. Confirmation of current levels for the digital currency targets $13,000 next. And, it could be approaching fast.
The Day of the Break-out?
According to leading derivatives trader, Tone Vay’s technical view, the price is very bullish and at the edge of a break-out on the daily and 4-hour scale. He notes his market update on Trading Bitcoin, that
Looks like it’s ready to break-out. And I think there is a good chance that it’ll go all the way to the double top from June from last year.
Moreover, he also sees strength on the monthly and weekly time-frame to amplify his bullish plans.
And indeed the price action is showing strengths of increased bullish activity. It is breaking out of the bullish ascending triangle on a daily scale. The duration of the built-up inside the triangle has been short. However, the consolidation at highs above $11,000 is very bullish for its price.
A close above the resistance from the 11,900 is projecting aggressive buying in the market.
Trading in the current environment could bore high rewards but doesn’t come without its risks. In the initial 30 minutes of the pump, the price action took to take stop losses on longs and short on both sides. In a span of 15 minutes, the high and low in XBT index on BitMEX is $12268 and $11620.
The price of Bitcoin [BTC] 14: 00 hours UTC on 17th August after the swift 5-minute correction to $11,600 is currently $12,160.
$BTC whale games
Nothing better than dumping the breakout
— Josh Rager (@Josh_Rager) August 17, 2020
Furthermore, the CEO of leading crypto exchange, Binance, notes that they are witnessing “very high traffic.” The smooth running of crypto exchanges during such times of hyper-activity are critical for the markets. Changpeng Zhao, updates on the minute issues seen earlier.
Very high traffic. Auto-scaling as a little behind. There was a balance syncing issue, fixed. there was also a web traffic hitting limit issue, fixed. Both lasted a few minutes. Luckily, # is still above $12k. The next wave might be big.
Hence, the euphoria and FOMO in the market takes the shapes on over-leveraged longs, the chances of flash spikes on either sides increase greatly.
What is your trading strategy at the moment? Please share your views with us.