BTC in large Descending Triangle?
Updated
For the sake of being a contrarian, here's the one bearish BTC post you'll see on the page today. But I'm not really sure why no one else seems to be seeing this.
Typically, a Descending (bearish) Triangle indicates distribution of an asset and is usually seen as a continuation pattern during a bearish trend. However, it can also indicate a reversal of a bullish trend. No matter where this pattern appears it is always Bearish. In this formation you will also typically see compression of volume until the downward breakout occurs. After which, a sharp increase in volume should be expected to confirm the pattern. I believe we can trade within this range until support at 9k eventually breaks and new lows are established at 8400, 7200, possibly as low as 4160 for a brief time. The reason I'm suggesting 4160 as a possible target is simply due to a rule frequently applied to this pattern; it is said that your target low for this pattern is determined by measuring its widest point and subtracting it from the support / resistance line.
This much of a dip seems excessive to me, but I'll include it as this is how forecasting a target for this pattern is typically instructed. It should also be noted that there aren't many other indicators suggesting a target price this low is likely in the near term.
After the retracement occurs it is likely that 2020 will see the emergence of a true bull market and a new ATH will be established before the cycle begins anew. When it happens, expect massive international FOMO once BTC secures a value of 20k for at least a week.
The price action of BTC so far this year may be due to a few factors. Many believe that this uptrend began due to iFinex printing Tether and using it to purchase BTC. It is also reported that there has been little new retail or institutional money entering the markets. At least not enough to generate an enduring bull market. If it's true that iFinex is printing fake money to purchase BTC it's a bearish scenario for all of us in Crypto. Sooner or later, they're going to take their profits. And since BTC is fundamentally the same as it was prior to entering a bear market, I'm not sure what else could have catalyzed the current markets price action.
Even if none of this pans out at all, I hope you at least learned something about the pattern.
Maybe I'll see you in the Flame Section down below.
Thanks!
Typically, a Descending (bearish) Triangle indicates distribution of an asset and is usually seen as a continuation pattern during a bearish trend. However, it can also indicate a reversal of a bullish trend. No matter where this pattern appears it is always Bearish. In this formation you will also typically see compression of volume until the downward breakout occurs. After which, a sharp increase in volume should be expected to confirm the pattern. I believe we can trade within this range until support at 9k eventually breaks and new lows are established at 8400, 7200, possibly as low as 4160 for a brief time. The reason I'm suggesting 4160 as a possible target is simply due to a rule frequently applied to this pattern; it is said that your target low for this pattern is determined by measuring its widest point and subtracting it from the support / resistance line.
This much of a dip seems excessive to me, but I'll include it as this is how forecasting a target for this pattern is typically instructed. It should also be noted that there aren't many other indicators suggesting a target price this low is likely in the near term.
After the retracement occurs it is likely that 2020 will see the emergence of a true bull market and a new ATH will be established before the cycle begins anew. When it happens, expect massive international FOMO once BTC secures a value of 20k for at least a week.
The price action of BTC so far this year may be due to a few factors. Many believe that this uptrend began due to iFinex printing Tether and using it to purchase BTC. It is also reported that there has been little new retail or institutional money entering the markets. At least not enough to generate an enduring bull market. If it's true that iFinex is printing fake money to purchase BTC it's a bearish scenario for all of us in Crypto. Sooner or later, they're going to take their profits. And since BTC is fundamentally the same as it was prior to entering a bear market, I'm not sure what else could have catalyzed the current markets price action.
Even if none of this pans out at all, I hope you at least learned something about the pattern.
Maybe I'll see you in the Flame Section down below.
Thanks!
Note
Chart still very much valid. Let's see what happens.Note
Drew these lines on the 20th, the price is still bouncing around in there. The only thing I'm wondering is if at the end of the triangle, will there be a giant red candle or a surprise green one?Because the chart says emphatically RED. Especially when FA is applied.
Note
Look at that...It worked, again. TA's pretty cool sometimes B-D
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.