Break and Retest Strategy for Crypto (Avoid Fakeouts)

Crypto breakouts can feel “easy” until the market wicks your stop by a hair and rips. This guide shows how to trade break & retest the crypto way: zones, acceptance, and volatility-aware sizing.

Published: February 14, 2026 • Last updated: February 14, 2026 • Reading time: ~9 minutes
Quick answer: In crypto, trade break & retest only after acceptance (break + close) and a retest trigger (hold or sweep + reclaim). Size smaller to match volatility.
Pillar guide: Break & Retest All pillar guides

Step 1: Choose the right level (don’t retest trash)

Crypto respects the same levels as other markets, but noise is higher. Use levels that matter:

  • range highs/lows
  • prior day high/low
  • major swing highs/lows
  • structure flips (S/R turns)

Step 2: Confirm acceptance (filter fakeouts)

  • Break + close beyond the zone on your execution timeframe.
  • Hold: price stays beyond the level (not just a wick).
  • No immediate reclaim back into the prior range.

Step 3: Retest trigger (your entry)

Two of the most practical crypto triggers:

  • Retest hold: price tags the zone and holds, then pushes away.
  • Sweep + reclaim: wick through the zone, then closes back in breakout direction.

Invalidation (where you’re wrong)

Invalidation should be beyond the retest zone. If price re-enters the prior range and accepts, the breakout thesis is invalid.

Crypto adjustment: zones + smaller size

Crypto often requires a wider stop. That’s fine—just reduce size so account risk stays controlled. If you don’t, you’ll feel “unlucky” while actually being oversized.

Checklist

  • Level is major (range edge / prior day / swing)
  • Break + close beyond the zone
  • Retest trigger (hold or sweep + reclaim)
  • Clear invalidation beyond the zone
  • Size reduced for volatility

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