The daily studies of Bitcoin show how prices have soared during the last two months achieving sharp acceleration particularly after stabilizing above 8000.00 territories.
Bitcoin offers a technical pattern that appears with bubbles. The parabolic curve pattern requires discipline when you trade it, as traders should focus on how to catch accurate reversal signs.
Back to our chart where we notice the possibility of drawing the pattern typically, but we are still looking for affirmed reversal candlestick pattern in addition to a signal of weakness to appear on RSI14.
We will place a sell stop entry below the nearest classical support of 10565.00, as a break of which will assist momentum indicator to present the required signal.
Actually, there are some trading strategies by which we can define the technical target for parabolic curve pattern, but I prefer to place the take profit at (base 4).
Base 4 resides in the 8000 boundaries, while stop loss should be placed above the closest resistance formed on the chart.
Dear readers, we will update you with more levels and explanations for this trade if the price behaviors adopt favorable reactions to the technical pattern.