Bitcoin Trading Strategy for Jan 28, 2017

If you've been following my previous posts, you'll know that I was looking for a retracement from $912 back to the high $890s to low $900s. Well Bitcoin, being the fickle beast that it is, decided to hold a bullish pattern of extremely boring consolidation in the mid $920s. All. Day. Long.

Hey, it happens...The best we can do as traders, is try to figure out which way we think the market SHOULD go based on the signals it's giving us. Sometimes we get it right, sometimes we don't. Sure, I could be stubborn and hold out for a few days or weeks until we, maybe, see $900 again, but that seems foolish to save a few bucks. Besides, our previous Cypher Pattern trade hit 2 profit targets, so we're in good shape. For today's trading, I look for this consolidation to hold out, maybe most of the day, then breakout to the upside, since that's the direction the trend was going prior to this consolidation. What has resulted is a classic Flag Pattern. Watch for the consolidation to continue until the flag makes a point, and hopefully, if I'm correct, shoot up towards the $930s. Then I expect maybe a .382 Fibonacci retracement back to the mid $920s as some profit is extracted, then continuation to the North.

Disclaimer: I am not a professional. These are only my opinions and guesses. Trading is risky and can cause you to lose money.

Did you find this article useful? Please Upvote! Should you feel inclined - BTC: 1KkaM4ZGbe7akkbvMVeX5ofCKezx5o7WHi