Despite more often than not symmetrical triangles to break in the direction following the larger trend, if you have been following BTC, you should be well aware that bitcoin doesn't comply with traditional trading. In that spirit of thoughts, ignoring all the FOMO and greed, I would entertain the idea of a triangle breakdown. In fact, I have noticed that happening in the past on several occasions, and we are all well aware that "History Doesn't Repeat Itself, but It Often Rhymes" – Mark Twain.
About the chart:
Red - symmetrical triangle support & resistance lines.
Orange - Upon a breakout, we can expect a move of approximately 10k (the distance between support & resistance upon the first touch of the trend line). Hence, considering the triangle's tip is at about 35k, our target should be ether 26k (bearish scenario) or 46k (bullish scenario).
Blue Pattern - BTC/USD price trend for the period 25/May/2017 to 15/June/2017. That period was equivalent to the current one - first euphoric run surpassing previous bull run all-time high with more than 100%. You can see that the price follows quite a similar trend at the moment; therefore, we can expect similar results.
To sum up, although I expect a sharp drop in the following week or two, I would expect buyers to step in at that point and never visit that level again. I definitely will!
About the chart:
Red - symmetrical triangle support & resistance lines.
Orange - Upon a breakout, we can expect a move of approximately 10k (the distance between support & resistance upon the first touch of the trend line). Hence, considering the triangle's tip is at about 35k, our target should be ether 26k (bearish scenario) or 46k (bullish scenario).
Blue Pattern - BTC/USD price trend for the period 25/May/2017 to 15/June/2017. That period was equivalent to the current one - first euphoric run surpassing previous bull run all-time high with more than 100%. You can see that the price follows quite a similar trend at the moment; therefore, we can expect similar results.
To sum up, although I expect a sharp drop in the following week or two, I would expect buyers to step in at that point and never visit that level again. I definitely will!
Trade active:
It seems BTC broke the support line and confirmed it as resistance on the 1 & 4 h time frames. I am looking forward to the daily close for further confirmation.
Trade closed: target reached:
As you can see, the hypothesis developed quite well. My orders at 30k have been filled. At the moment, we are looking at two potential scenarios. Case one: we drop further to approximately 27 500. If that's not the case, we can assume we are in descending triangle and expect to bounce to around 35k.