Potential rising channel breakdown on Bitcoin
Updated
Bitcoin had been forming a rising channel for quite a few days here which is seen best on the 4hr chart timeframe. I chose to show it on the 1day timeframe though because the channels breakdown target just so happens to align with the daily 50ma(orange line). It would make a lot of sense for it to retrace to the 50ma and attempt to retest it as support. Of course being that we are in the midst of a potential phase 3 of our bull market, this also increases the chances of bearish patterns not hitting their full breakdown targets(especially on time frames smaller than 1day). So there’s no guarantee it hits its full breakdown target. Many times in this cycle of the market price can even form bearish patterns that till find a way to break upwards. There’s also a chance here much like when we topped out in 2019 after a big parabolic pump in of this just being the beginning of the correction and for price to break down from even a couple more additional bearish patterns as well. So I will do my best to keep things updated If I see any further bearish patterns form off of wherever this one goes but for now, I preliminarily am going to try to get a small dip buy in if it reaches this current potential break down target and then watch for t he next pattern to develop after that. *not financial advice*
Note
Bitcoin has done a great job at floating sideways since breaking downward frm the rising channel. Since we are in the middle of the bullish market cycle bearish chart patterns dont always hit the full 100% price of their breakdown target but I still think its very likely this ones target at around 54k can still get hitNote
As with many bear patterns in a bull market this one didnt hit its 10% full breakdown target. Of course still a chance the target could be hit if we get blindsided by a black swan event , but for now probability favors the target not reaching the full 100% breakdown.
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.