BITCOIN - The Triangle Tip Coming Closer = Explosion!?The time goes by and the price draws us multiple patterns but none of them have made breakouts which can make those active/activated.
Over the night BTC price made a bigger descend comparing the last few days volume. It stopped on the previously worked support level exactly on the $7,600. Currently, this level has held us several hours and let's see do this level breaks or not. If it breaks then $200 fall and we have another one. This time there is an "old" resistance level which becomes support, it has worked also historically pretty nicely at $7,400. The $7,400 is a bit stronger level because there comes into the play one part of a drawn chart pattern - triangle bottom trendline.
The Triangle
The triangle should be an indication that soon we will see a decent action. Historically, it has guided the price nicely into the breakout directions, breakouts can occur in both direction but usually trend following breakouts are more powerful. The triangle tip getting closer and closer, the price smashed together and it is ready to explode. Now, we just have to wait for that breakout which finally should activate a pattern. To trade inside the pattern is a bit risky. If you can do it, please go ahead but my recommendation would be - wait for a breakout.
Where and when the breakout gets confirmed?
Bullish Breakout:
First bullish confirmation should come after the 4H candle close above the $8,000. Currently, the well-known 8k level matching exactly with the triangle upper trendline and if the breakout occurs before 26. May then this should be pretty powerful. Why before May 26? Because if the time goes by then the gap between 8k and upper trendline getting bigger. Then the candle has to be pretty long to make 2 in 1 breakout. Before that date, the 2 in 1 is pretty powerful and you should wait for it. The breakout should be made by the strong/long bullish candle, this will show that the volume has been hard enough to beat the strong resistance and we can go into the fight with higher and important price levels just above the breakout. The climb into the higher prices is not easy after the escape from the triangle, between 8k and 8,5k, are multiple key price levels, there is strong resistance at $8,200, there are areas which should make an important impact on the short-term and long-term price structure - higher highs. The break above the triangle upper trendline is the first step to the 10k and the last step is a break above the $8,489 - long-term higher high. Still, we can't forget that last Weekly candle close which will be higher timeframe supporter for breakout upwards from the triangle, plus chart pattern breakouts are more powerful into the trend direction.
Bearish Breakout:
As mentioned before, the $7,400 is the key support level. There are the strong price level and the triangle bottom trendline crossing area. If this level breaks then we have a break below the triangle and the strong level is also cracked, so, it should be pretty clear confirmation area and actually the similarities compared to 2018 July is pretty insane:
We can count this fractal as a confirmation after the break below the triangle. The first target is around $6,700, there is another strong price level and the 200EMA which should act as a support level.
Currently, the altcoins are mostly on the daily minus side and they are also waiting for some action from BTC but soon the movement comes. Triangle tip comes closer after every hour and triangle tip has guided the price into the explosions multiple times! Prepare for the breakouts!
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Cheers!
*This information is mostly used for educational purposes only!
