Intra-day Price Action: Bearish Triangle Formation ?Hello Traders,
On the 4 hour time frame, Bitcoin is likely to developed a bearish triangle pennant, a continuation pattern that suggests further downside. Within this formation, lower highs are stacking up, meaning traders’ stop losses are accumulating above the resistance. This creates a liquidity zone, which could be tapped before a breakdown occurs.
The pennant has an apex zone, the point where dynamic support and resistance converge. This suggests price will soon make a decisive move. If Bitcoin breaks down from the pennant with strong volume, the next technical target is around $69,470, aligning with the measured move of the formation. However, if Bitcoin fakes out to the upside with no volume support, a rapid rejection could accelerate the downside move.
Key Technical points to remember for this potential bearish pennant.:
- This pattern typically signals continuation of the prevailing downtrend.
- Liquidity Build-Up inside the triangle places emphases on price action rotations
- Apex Zone: This is when the dynamic support and resistance of the pennant converge, leading
to an impulsive break
Technical Target: A confirmed bearish breakout could send Bitcoin toward $69,470, this is a measure move of the triangle formation.
