Range Breakout

Bitcoin is eyeing a break above $11,000

To view this email as a web page, go here.

September 6, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   Trading the Range Breakout BTC/USD : Price: $10,900 | MCAP: $195 billion  | Maximum Gain: +0.84% (trade open) Why we were intrigued: Bitcoin rose above $10,800 at 11:10 UTC today, confirming an upside break of a recent trading range of $10,400 to $10,800.  Usually, traders wait for confirmation of the breakout in the form of an hourly, 4-hour or sometimes a daily close above the upper edge of the trading range.  Bitcoin, however, moves by $1,000 or more in a matter of just a few minutes. So, investors who wait for a confirmation on closing basis often miss the bus.  Hence, our analyst shared the long trade idea on CoinDeskDojo as soon as the breakout above $10,800 was confirmed on the 5-minute chart. BTC will likely reach the target of $11,100 in the next few hours, as the range breakout is backed by an uptick in buying volumes. Further, the daily chart is reporting bullish conditions – the cryptocurrency jumped 6 percent on Sept. 2, confirming an upside break of a descending triangle pattern.  Also, CoinDeskDojo members have been advised to revise the stop loss higher to long trade's entry price of $10,830. So, even if there is a sudden pullback, the trade position will be squared off at cost. (no loss).   Looking forward BTC's range breakout indicates a continuation of the rally from the recent low of $9,360. That said, a more reliable indicator of bullish revival would be a UTC close above the lower high of $10,956 created on Aug. 20.  A bullish close above $10,956, if confirmed, would open the doors to $12,000.  The bullish case would weaken if prices find acceptance below $10,400 in the next 24 hours or so, although as of now. that looks unlikely.  The Trade   The Result  Bull Trap in Cardano ADA/ETH: Price: 24,983 | MCAP: 105,221 BTC | Maximum Loss: Nil Why we were intrigued: Cardano's ether-denominated exchange rate (ADA/ETH) was looking north a week ago.  The cryptocurrency was rising along the ascending (bullish) 10-day moving average (MA) and the ascent was backed by an above-reading on the 14-day relative strength index (RSI).  Further, the chaikin money flow (CMF), which takes into account both prices and trading volumes to gauge buying and selling pressures, was reporting seller exhaustion with a bullish divergence.  All-in-all, on Aug. 30, the stage looked set for a rally from 26,850 to 28,000. The cryptocurrency, however, topped out at 27,000 on the following day and is now trading below 25,000. The bullish setup failed, possibly due to weak buying volumes. Prices rose from 22,387 to 27,000 in the twenty days to Aug. 30. During that time frame, selling volumes were consistently higher than buying volumes – a sign of bull trap.  The Trade   The Result    We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list