BitcoinLong
Ascending Triangle for Bitcoin?
Updated
Hello Traders!
I wanted to share with you a possible scenario for Bitcoin. For those who have seen my previous TA post, I projected a Cup&Handle pattern which has been pretty accurate. You can check it out here:
Now we are at an important level for Bitcoin as it has reached the downtrend resistance line that I have drawn as the red dotted line. If you check out my previous post you can see this trend extends back to ATH's. If my cup and Handle pattern plays out, then we should break through this level and reach the 0.786 Fibonacci Retracment line based on the height of the Cup. However, I have noticed that another pattern might be playing out which is equally as bullish; the Ascending Triangle.
Now the reason in think we might go down briefly is because of the Rising Wedge pattern that has formed. If this pattern plays out, I have measured the downside targets and drawn a red arrow as and indicator. We want to see Bitcoin bounce back to retest the trendline, and hopefully breakthrough up to to the top of the triangle. This would be very Bullish, because we would not only escape the bear's downtrend line for the first time in months, but also confirm the Ascending Triangle pattern.
These are key levels that you should be keeping an eye on. As I have said on my previous TA for Bitcoin, trades should NOT be entered until we have a clear breakout. I am not a financial advisor.
I wanted to share with you a possible scenario for Bitcoin. For those who have seen my previous TA post, I projected a Cup&Handle pattern which has been pretty accurate. You can check it out here:
Now we are at an important level for Bitcoin as it has reached the downtrend resistance line that I have drawn as the red dotted line. If you check out my previous post you can see this trend extends back to ATH's. If my cup and Handle pattern plays out, then we should break through this level and reach the 0.786 Fibonacci Retracment line based on the height of the Cup. However, I have noticed that another pattern might be playing out which is equally as bullish; the Ascending Triangle.
Now the reason in think we might go down briefly is because of the Rising Wedge pattern that has formed. If this pattern plays out, I have measured the downside targets and drawn a red arrow as and indicator. We want to see Bitcoin bounce back to retest the trendline, and hopefully breakthrough up to to the top of the triangle. This would be very Bullish, because we would not only escape the bear's downtrend line for the first time in months, but also confirm the Ascending Triangle pattern.
These are key levels that you should be keeping an eye on. As I have said on my previous TA for Bitcoin, trades should NOT be entered until we have a clear breakout. I am not a financial advisor.
Note
As we predicted, we got rejected at the trend line and fell through the Rising Wedge. Still on target to forming the Ascending Triangle. All eyes on Bitcoin -4.84% now!
Note
We have perfectly hit the downside target from the falling wedge. On the hourly timeframe we are seeing some divergence with the RSI . We could still potentially go down a little further and touch the bottom of the Ascending Triangle line, which would be fine. What I would like to see is a reversal from either of these points, and preferably from the falling wedge target.
If we dip below the Ascending Triangle line, we really don't want to see a capitulation back down to the 0.236 Fib Retracement ($9273). If this happens then I would change from bullish to bearish . I don't think this will happen but it's important to be aware of this scenario.
Note
Quick update for Bitcoin! Missed this last night and was a little drunk when I got home to check the price, so thought I would wait until the morning to update :)
You can clearly see that we capitulated past the bottom of the Ascending Triangle with a massive spike in volume . Reading up today it seems there is a lot of FUD spreading about Binance, MT Gox selling etc. These type of news events are used to manipulate the price, so don't get caught up in the hype until you have done your due diligence and fully researched what's happening. There's nothing fundamentally to worry about yet.
Now the price action is looking a bit more weaker with this recent dip, but we didn't actually fully make it down to the 0.236 Fib Retracement, although only just. This is a level that I want to see Bitcoin -0.86% hold. RSI is oversold on the 4 hour time frame which lead to a quick bounce. If we can sustain this bounce and head back up, then we could technical still create and Ascending Triangle pattern. At the moment we have almost made an equilibrium pattern, with matching highs and lows over the past couple of weeks. Hard to call what direction we will go so we will have to see what Bitcoin -0.86% does over the next few hours!
Note
New idea: 
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