Bitcoin Breakout on way
Bitcoin Breakout
Hmm what is a break out? no no no no no its not a guy that just broke out of jail or a stunt man who just broke out of that straight jacket!
Breakout is huge its so important, its like when sea biscuit (the horse) comes crashing out of the gate at the race track and fly's by all the other horses with a huge and unimaginable lead up to the finish line, sometimes a little past then something happens after that which isn't as amazing and has to do with a huge down stroke or very bear....market.
The definition of a break out is- when a security or a currency in our case (cryptocurrency i.e bitcoin, ethereum) passes a certain level of resistance which is usually followed by heavy volume and volatility. trader's buy the asset once it breaks above the level of resistance or when it breaks bellow a level of support.
what causes a breakout?- price resistance occurs when a excess level of supply for a particular security or investment accumulates at a particular price and creates a glut in supply that overwhelms demand and impedes the upward movement in the price. when the resistance is breached it would look like a sharp move upward resulting in an abrupt shift and occur when the level of resistance is breached.
Is it a good thing?- Yes! it is great because the stock or coin will be trading at a much higher volume so if you know how to time it or your timing is right then you will be able to sell at the right time sometimes higher than market order and you can take your winnings and invest elsewhere or sell over 75% so you know you made all your money back plus a tidy profit and wait a bit more to sell off the rest and buy back once it is bellow the level of resistance! that last move is a bit risky but that's how I would play it sometimes and it has failed me but the good luckily for me outweighs the bad!
What does a break out look like? sadly I don't have a picture but feel free to google it so you can get an idea of how this looks!
I hope this helps and hope you are enjoying the content and hope it has provided insight and perhaps inspired people and on the flip side hope it makes your crypto investing easier or less intimidating
if you found this interesting leave a comment or leave a comment if it wasn't good enough. if you enjoyed this post check out the one bellow for info on a very important strategy call diversification
Comments
Post a Comment