Today's technical analysis will be focusing on BETA/USDT trading pair on Binance exchange. Despite being a relatively new coin, an exciting pattern has developed on its weekly chart that may imply a change in the prevailing downtrend.
Ascending Triangle Pattern:
The Ascending Triangle pattern, typically recognized during periods of consolidation,can be viewed as a bullish pattern or bearish pattern. It is characterized by a horizontal resistance line, and an ascending support line.
Analysis:
BETA/USDT has experienced a significant downtrend since its inception, which is represented by the blue diagonal line. We see that a consolidation phase interrupted this downtrend, forming an Ascending Triangle pattern. The horizontal resistance is at 0.12131 with four touchpoints, while the ascending support line has five touchpoints.
Due to the relatively young age of the chart (86 weeks old), the EMA calculation has been adjusted to a 21-week EMA. The price appears to be consolidating above this EMA, suggesting a bullish environment.
If the price successfully breaks above the horizontal resistance, we could consider entering a long position. The projected price target would then be at 0.18625, indicating a potential upside of approximately 53.61%.
Conclusion:
BETA/USDT's weekly chart reveals an interesting setup in the form of an Ascending Triangle, suggesting a possible end to the current downtrend. This setup could present a profitable long trading opportunity.
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always do your own research and consult with a financial advisor before making investment decisions.
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I think it looks very bullish. I can see the accumulation (if you can read candlesticks). For instance...the high number of inverted hammers appearing at a bottom suggests a type of absorption to setup an advance later. It broke your triangle, but I would keep it on your radar.
KarimSubhieh
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@kosai19, I agree with you, although the initial idea failed. However, after the breakdown the price has remained relatively stable in a range indicating that the bears are exhausted, might need to re-analyze the situation soon.
kosai19
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@KarimSubhieh, Very well said... When price does that I call it "bar stabilization." It''s a specific candlestick that I observed. Hope it works out for you.