Trade Bitcoin Trading

Technical Analysis Consolidation Setup

To trade consolidation chart patterns in bitcoin traders need to learn about the technical analysis of consolidation bitcoin chart pattern.

Consolidation BTCUSD Patterns

Consolidation bitcoin patterns are chart patterns with converging bitcoin trend lines that form a bitcoin price consolidation period phase.

The technical buy point from a consolidation chart pattern is the up-side breakout of bitcoin price

While a down-side breakout of bitcoin price is a technical sell bitcoin signal.

Ideally, a market breaks-out from a symmetrical triangle prior to reaching/getting to apex of the symmetrical triangle.

Bitcoin Trend Lines can be drawn by connecting/joining the lows & highs of the consolidation period, the bitcoin trend lines formed are symmetric & converge to form an apex.

A bitcoin price breakout should occur somewhere between 60-80% into the consolidation chart pattern - triangle chart pattern. An early or late breakout is more liable to failure, & henceforth less reliable.

After a bitcoin price breakout the apex forms support and resistance zones for the bitcoin price. BTCUSD Price which has broken out of the consolidation pattern should not retrace past the apex zone. The apex of the consolidation pattern is used as a stoploss order setting area for the open Crypto trades.

When these consolidation chart patterns form we say that the Bitcoin market is taking a pause/break before deciding which is the next direction to move.

The consolidation patterns form when there's a tug of war between the buyers and the sellers & the btcusd market can't decide which way to continue.

Bitcoin Trade a Consolidation Setup - ==22==BTCUSDBTC/USD Crypto Trade a Consolidation Pattern

Crypto Trade a Consolidation Pattern? - Technical Analysis Consolidation Crypto Pattern Setup in Crypto Trading?

However, this consolidation pattern can't go on forever and just like in the game of tug of war one side eventually wins, looking at the chart example illustrated below see how the bitcoin trading consolidation pattern eventually had a bitcoin price break out and moved in one direction.

Crypto Trade a Consolidation BTCUSD Pattern

Sell ==22==Trade Signal

Buy Signal - Crypto Trade a Consolidation BTCUSD Setup - How to Read and Interpret Chart Pattern Setups Breakout

Buy Signal

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