Bitcoin Symmetrical Triangle Breakdown Trade Setups
Updated
Bitcoin has been stuck in a symmetrical triangle after the initial head and shoulder breakdown from the ATH of 64K. While we might have preferred for Bitcoin to break to the upside, we noted that the false breakout to the upside that we did have substantially increased the likelihood of a break to the downside, which is what has occurred. Price broke out of the triangle to the downside with strong volume and have continued to the downside following the initial break. If you missed the initial short at the point of the breakdown, here are three potential trade setups to watch out for:
1. Short on retest and rejection at the point of breakout, which is likely to be around the 35.5-36K region.
2. Long on a reclaiming of the symmetrical triangle if price rallies back within the triangle and establishes the bottom of the triangle as support.
3. Long on a false breakdown at 30K if price breaks below 30K and then quickly recovers above 30K with strong volume
I personally wouldnt be opening up a short right now, as even if we are in the beginning of a major leg down, there is a high likelihood that we at least retest the point of breakdown before doing so, Of course, it. is up to you if you want to open a short here and perhaps add to the short if prices retest the point of breakdown or if price definitively break down below 30K. How you choose to play and trade this current structure is up to you, I can only provide the potential scenarios based on technical analysis.
As always, I’m not a financial advisor, do your own research, and stay safe!
1. Short on retest and rejection at the point of breakout, which is likely to be around the 35.5-36K region.
2. Long on a reclaiming of the symmetrical triangle if price rallies back within the triangle and establishes the bottom of the triangle as support.
3. Long on a false breakdown at 30K if price breaks below 30K and then quickly recovers above 30K with strong volume
I personally wouldnt be opening up a short right now, as even if we are in the beginning of a major leg down, there is a high likelihood that we at least retest the point of breakdown before doing so, Of course, it. is up to you if you want to open a short here and perhaps add to the short if prices retest the point of breakdown or if price definitively break down below 30K. How you choose to play and trade this current structure is up to you, I can only provide the potential scenarios based on technical analysis.
As always, I’m not a financial advisor, do your own research, and stay safe!
Note
As mentioned in the original post, theres a high likelihood of price coming back to retest the point of breakout. It looks like price wants to get back to that zone, which is now the confluence of the 200MAs and the bottom of the symmetrical triangle: 
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