Trade Bitcoin Trading

Breaking Down Bitcoin Trading Breakout Patterns

Spot Bitcoin Breakout Patterns in BTC Trading Charts

How to Identify & Trade Bitcoin Pattern Break-out Bitcoin Setup

BTCUSD Crypto Patterns Examples Explained

This tutorial on Bitcoin pattern breakout charts shows how to spot crypto chart patterns. Spotting crypto patterns stands as the key first move in picking up Bitcoin trading skills with these breakout charts.

Bitcoin charts often show breakout patterns. This guide covers trading and reading crypto charts with those patterns.

Bitcoin Pattern Break Out

The pattern of cryptocurrency consolidation cannot persist indefinitely: similar to a tug of war where one team prevails, the chart below illustrates how the consolidation phase in cryptocurrency ultimately resulted in a breakout, moving decisively in one direction. So, how do we ensure we align with the winning side?

Bitcoin Selling Signal Triggered by a Downward Breakout Following a Consolidation Pattern on Charts

Signal for Selling Bitcoin as a Result of a Downward Pattern Breakout Following a Period of Consolidation

Buy Signal for Bitcoin Upon Breakout from an Upward Consolidation Structure

Bitcoin Pattern Break Out Upward Buy Bitcoin Signal after a Consolidation Trading Pattern

Returning to the main query: how can one confirm they are positioned with the advantageous side of the trade?

We wait until price moves past a line in the pattern and then place buy or sell orders in that direction. After the price has been in the pattern, if price breaks above we buy, if it breaks below we sell.

If you skip waiting for the consolidation pattern, try pending orders for crypto. To learn more on pending crypto orders, go to this lesson: Bitcoin Trade Stop Entry BTCUSD Order Types.

The two categories of stop orders utilized in BTCSUD trading when engaging consolidation patterns within Bitcoin markets are:

  • Buy Entry Stop An order to open buy at a point above btcusd market bitcoin price - after an upward bitcoin price break out.
  • Sell Entry Stop An order to open sell at a point below btcusd market bitcoin price - after a downwards bitcoin price break out.

These are orders to open buy above the btcusd market or to open sell below the btcusd cryptocurrency market.

Learn More Courses & Tutorials:

Bitcoin Broker