Back about a month ago I wrote this blog post about the developing setup in bitcoin. At the time it had changed character from a steep downtrend to a long extended, rectangular base. This type of price movement reflects the waning of selling pressure and an equilibrium between buyers and sellers. All that is needed for this to be a tradeable investment opportunity is for buyers to begin to step in and take control. Control is borne out by higher prices and confirmed with volume during the break out to the upside out of the rectangle. That is exactly what eventually happened in bitcoin as you can see in the chart below
Rectangles are my favorite pattern because they are, in my experience, the most reliable and profitable patterns to invest from. Because they are so well defined, it makes the management easy and their upside targets very clear. In the case of bitcoin, its upside target was met and exceeded yesterday … a very nice 35% in 5 short days. Congrats to those that followed along and it is time to seriously consider locking in profits for some or all of your position if you have not already done so.