BitcoinShort
BTC/USD Pencilling in Broadening Pattern
Following a spirited push to the upside in recent weeks, the BTC/USD pairing has taken a breather in recent price movement and formed what many technical analysts may recognise as a broadening pattern (formed by two diverging lines taken from $52,868 and $51,372).
However, what is interesting and the reason why this market has made this list this week is due to the fact that broadening patterns can sometimes form the beginnings of a diamond top pattern. As shown from the chart, the second part of the diamond top formation extends from the broadening formation in the shape of converging lines. This is considered a notable bearish reversal pattern, and considering it is forming around weekly resistance at $51,952, BTC/USD bulls may struggle to find acceptance at higher prices and may prompt a retest of $50,000.
However, what is interesting and the reason why this market has made this list this week is due to the fact that broadening patterns can sometimes form the beginnings of a diamond top pattern. As shown from the chart, the second part of the diamond top formation extends from the broadening formation in the shape of converging lines. This is considered a notable bearish reversal pattern, and considering it is forming around weekly resistance at $51,952, BTC/USD bulls may struggle to find acceptance at higher prices and may prompt a retest of $50,000.
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