A descending triangle pattern is consolidation price pattern composed of lower swing highs pushed lower by an established downtrend line converging with a horizontal support made up of a series of swing lows located in roughly the same area.
Descending triangles are a very popular chart pattern among traders because it clearly shows that the demand for an asset is weakening, and when the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger.
In this case of BTC, if it breaks below $6,400, theres a high potential that it will fall to $5,800. However, given the bullish news on billion dollars hedge fund potentially coming into the game, potentially we might see more institutional funds come in as well, pushing the market back up to above $300 billion for crypto market cap.
Descending triangles are a very popular chart pattern among traders because it clearly shows that the demand for an asset is weakening, and when the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger.
In this case of BTC, if it breaks below $6,400, theres a high potential that it will fall to $5,800. However, given the bullish news on billion dollars hedge fund potentially coming into the game, potentially we might see more institutional funds come in as well, pushing the market back up to above $300 billion for crypto market cap.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.