Bitcoin Breakout Looks Very Likely

December 13, 2016

In my opinion, Bitcoin is on the edge of a breakout.  On multiple timeframes, and on multiple bull setups, pricetime is on the edge of pushing past arc resistance.  There is a lot of room to the upside before the next arcs appear.  Here is the 8-hour chart:

This one I find quite intriguing.  Pricetime is about to push it’s way through 5th arc resistance.  It has been clawing it’s way upwards for weeks now.  Pricetime met the 5th arc and had every excuse handed to it to fail, but it chose not to.  Indeed, it is simultaneously about to clear the 5th arc pair, and apparently also about to get a close above the $780 swing high.  In my opinion, this is very bullish.

I have witnessed that on many occasions that in cases like this, when price clawed its way through every resistance, and finally clawed its way through 5th arc resistance, a major bull rally began.  Indeed, this was exactly the scenario in both the great bull run of 2013 in Bitcoin, and also in ethereum this spring.

Will it happen again?  I can’t say for sure.  But I would STRONGLY urge anyone who is short this market to close their positions at once.

Here is a daily chart:

Here we see on the daily chart that pricetime is at the 2nd arc of the 3rd arc pair.  The blue vertical line indicates that we are now exactly 180 degrees from the $780 swing high day.  What a fitting day to break out!

The 5th arc on this chart/setup is in the $1020 area, +/-.  However, it depends on how soon pricetime gets there to determine the price at which it meets the arc.

Stay sharp.  I think this is going to be fun.

Happy trading!

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

Image from Shutterstock.

Last modified (UTC): December 13, 2016 21:53

Jim Fredrickson @jimfred1276

Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.