The Triple Threat: 1) The Upper limit of the huge 2018 descending triangle. 2) The 200 Day MA. 3) The 50 Week MA.
A rejection here looks reasonable. Bulls will likely lose hope at this juncture and I anticipate a massive uptick in bear volume, which will eventually snowball out of control. The final result being a violent breakdown of the triangle and big capitulation V shaped bottom. Here I think a multi month range will be found as prices builds towards an uptrend which can hopefully see clear blue sky again.
Would not the target of that triangle be beyond ZERO?
MissingAnderson
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@Kwa, I don't really have a precise target for this scenario, but if you want to go by the textbook. A drop from $13000 (top of triangle) to $6000 (base of triangle) is 53.9%. So the target would be 0.461 x 6000 = $2766.
I am not declaring BTC will reach that price. If this scenario plays out I plan to short around 8k and am aiming to close out <5k. Stop loss at $8300 with R/R > 1:10.
Hope this clears up you question.
MissingAnderson
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@hopkinsalexander,***My entry would be around $8300 with a stop above $8600 (just looked at the chart again and realised the 50 week will be higher than originally thought)
Alinoe
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I like the descending triangle, but 1st: crossing of 50 and 200 ma is bullish sign, 2nd if MA 50 and 200 wuld cross and BTC would plunge, MA50 would immediately follow underneath again as it is median of last 50 days (and hence smaller in value)
MissingAnderson
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@Alinoe, HI! The moving averages are 200 DAY and 50 WEEK (which equates to 350 DAY (50 x 7)), so a cross would be bearish. Hope that clears things up for you.
Alinoe
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@hopkinsalexander, Haha yes. saw 50 and jumped to conclusions too soon. Yeah that would be bearish crossing