fxlordice
Short

Bitcoin - Triangle, Rectangle, Pennant - still a Correction

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Bitcoin H1 chart, point us a PA exhaustion. But based on the Higher Time Frame analysis, we still have plenty of room for the Bearish side.

Even if this Symmetrical Triangle would be BO on top, would still be a corrective Pattern (Falling/Rising/Widening Triangle or Rectangle ). The secret is the right counting on minor "abc" sub-swings, between AB, BC , CD, DE. And the "E?" should be often seen as lower than the upper band (of the Triangle/Rectangle/Pennant). And by having a previous Bearish Impulse, we also have a minor "abc" before the A (Patterns counting starting point).

After a previous aggressive Impulse, we can expect a certain pressure from the Buyers (could be "whales") and therefore a correction. But, imho, I don't expect it to last or to be strong enough to cover a healthy fibonacci retracement of minimum 50%, ideal 61.8%, from the whole impulse. Which, technically means, a powerful NEW Bearish Impulse to be in place.

The white projection lines, represent Triangle or Rectangle TP levels. And the big yellow ones, represent the Inverted Flag/Pennant TP.

Though it's a Symmetrical Triangle (based on the HLs and LHs), I don't expect the event of a BO on top to last ( the pattern would become a Rectangle , in development).

The ray horizontal lines represent minor Support live, where we should usually see a 38.2% fibonacci retracement . And on the Big Support zone we should expect ideal & healthy retracements of min 50% fib (confluence with added on the counter trend green fib, instead of using the Fib Extension tool).

And the whole Correction would become later on a Bearish Harmonic Pattern ("W" letter Harmonic ). So, I look for to Sell again, when any of these Correction will be confirmed as completed.

Hope this helps.

Ice.
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