DrDovetail

A dominant pattern emerges in btc: a 1day symmetrical triangle

BITSTAMP:BTCUSD   Bitcoin
The symmetrical triangle has been growing more and more predominant with each day candle and now seems to be the most valid of the current possibilities. The symmetrical triangle itself is a continuation pattern coming off of a recent downtrend so it favors the downside. However, also still currently valid is a diamond bottom pattern(in purple) which usually favor an upward break(however bearish continuation diamonds also are a thing). For this reason alone i'm leaving this idea neutral instead of bearish. After these two patterns the next bear pattern we can see here is a potential head and shoulders pattern..currently its not as certain to play out but if we were to break downward from triggering the symmetrical triangle breakout would most likely at the very least dip under the neckline of the head and shoulder pattern with a wick. If we were to then trigger that head and shoulder pattern we are looking at 2.8k territory and possible capitulation at that point. If we are to trigger the diamond bottom pattern and head bullishly upward the target for the diamond bottom breakout is around 3850ish or so ....odds are very good at that point we would most likely eventually just form another lower high end would simply be prolonging are inevitable capitulation that much longer. I personally think a break downward is better in terms of allowing us to speed u the end of the bear market at this point so I'm siding with continuing the downtrend even though the idea will be listed as neutral. Finally though we have some clarity at the predominant patterns currently on the chart. Thanks for reading and good luck!
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