Given the recent movement of Bitcoin (BTC), which could be described as sideways, in this article we will look at the possibility of using a strategy that has rarely been applied to this market: the false breakout.
What is a false breakout?
A false breakout is a situation in which a breakout occurs at a sensitive level, such as the previous session’s high, and then the market decides to reverse course and retrace its steps, forming another breakout, but from the opposite side.
An example of this pattern is shown in Figure 1. This type of strategy should tend to work at times when the market is not particularly buoyant and there is no clear trend. A bit like 2023, which started with a lot of momentum and directionality, but became less volatile and expansive from mid-September.
Figure 1. Example of a false breakout on the previous session’s low
Rules of a hypothetical trading system based on the false breakout in Bitcoin (BTC)
The strategy you are going to use will wait for a f
We współpracy z: https://en.cryptonomist.ch/2023/10/28/implement-false-breakout-strategy-bitcoin/
