Hi guys, tonight I am looking at a bullish butterfly on Bitcoin/USD. On the way up back in June 2017 we saw BTC -4.18% hit resistance at the $7600 level, which them turned to support before price continued northward. Our PRZ lands at the $8200 mark, where price briefly bounced for 5 days back in November before proceeding to create new highs.
As you can see from my previous bitcoin -4.18% trade, these earlier support levels are holding well, so I expect this level to do so as well (see below).
Using this pattern we set are looking for a TP of $11,180, with a stop loss at a minimum risk/reward of 1:2. In this instance I am specifically using 1:3 as this gives us a greater return, and the stop-loss is still below the previous level of resistance.
Butterfly ratios:
B = 0.786
C = 0.382-0.886
D = 1.618-2.24
X to D = 1.272
This move has already begun but should be good to go if price is to re-test the $8200 mark. I'll be updating as I go!
Have a good weekend everyone. :)
