Bitcoin’s breakout is a bust

Bitcoin seems posed to hover around $11,500 until a major breakout occurs. Just as BTC has done three times since March I expect a move of $1,000 or more to be the most likely way for BTC to exit the sideways trading it is currently in.

Although BTC futures are currently up over 1.2% today and gapped back above the 50% retracement at $11,576 I do not see this level as active support just yet. Although I am bullish on Bitcoin, I see the likelihood of a correction taking futures as low as $10,500 as high.

So, for traders currently positioned in BTC that have any profits on the trade to pull profits or at least lighten their positions. For traders in the market but not in profits you could stay in but only if your risk appetite is high. For traders on the sidelines we recommend that you remain flat and look for an opportunity to buy the dip should one occur.

The most likely scenario is continued range bound movement between $11,000 - $12,000. However, when it does break the charts seem to point to the fact that the breakout could possibly be to the downside.