Crypto break-outs pending? Tight consolidations look bullish

Jun 10, 2020 • 3 Min Read

Seeing is believing for many TA’s but traders and investors don’t always have that luxury - Many technical analysts understandably prefer to see technical patterns resolve in one direction or another before committing new capital to a developing trend. We  have said it before, pre-judging technical patterns before they resolve can be detrimental to one’s  financial health. That’s all fine for starting new positions but most investors are already committed to positions that need to be managed. The alternative approach is to be positioned with an expectation a pattern will resolve in a specific direction and managing the uncertainty with stop losses should the pattern resolve in the opposite direction. Given the volatility within digital assets, that approach may very well prove to be a better tactic in the coming weeks. 

Why is this discussion likely important now for digital assets now? Over the past few weeks, most digital assets have traded in increasingly narrow ranges head faking every few days in one direction or the other. Our expectation is many cryptocurrencies will resolve to the upside in the coming weeks given their underlying trend since the March lows remains positive and in the case of BTC, its longer-term trend remains positive. In short,...

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