As I write this Bitcoin has broken through it's all-time high and is now challenging $20k USD. Sure enough, from a technical aspect, what led to this epic run was an AT1, then AT3 breakout. It has it's problems however, and given the nature of the market, volume analysis greatly differs depending on which exchange you look at on the chart.
Here is the current move, with data from the Bitstamp exchange on the BTC/USD pair. Let's analyse the AT3 that spawned this move. Can you spot it?
If you thought AT1-3 only works on stocks, you're dead wrong. I specifically selected these patterns for deep study because of the fact that they appear so often in so many different markets. They are time-frame and market agnostic. Below you can see that we've identified an AT1 pattern on the 20 minute chart, that eventually turns into an AT3 breakout as well, very powerful! We could also go a little higher into the 1 hour or 2 hour chart for a larger perspective, but I like the level of fidelity on the 20 minute.
In yellow, you can see the AT1 setup. In white, the AT3 breakout. Both of which were respected by price action. Now, I bought this move all the way up. Why? Because of a larger technical outlook, and a fundamental position that just strengthened with the appointment of Janet Yellen. But that's a different story! None of that would have been actionable if it weren't for the technical setup. Let's dive in further into the move and break it down. via video!
Stay safe! Feel free to continue the conversation in this thread. There are no stupid questions 🤗 .