TerryKinder

Bitcoin Descending Triangle - Price Continues to Look Weak

BITSTAMP:BTCUSD   Bitcoin / Dollar
The Bitcoin price continues to look weak. Volume has generally been light and technical indicators such as MACD continue to decline.

I modified this chart from my previous one (https://www.tradingview.com/v/355On4mu/) in a few ways:

1) Moved the descending portion of the triangle up slightly toward the candle wicks. This lengthened the triangle. I think this better reflected the price action.

2) Changed the time frame on the technical indicators back to a longer length. I had thought, perhaps, by shortening the length of time captured by the indicators that it might provide an early signal for a future price movement, but I think it created more noise than signal.

3) Moved the horizontal portion of the triangle up slightly from around $609 to $610. This reflected a little better where some of the candle wicks reached low prices.

My thought on the Bitcoin price remains more or less the same. I think the price is going to break down rather than up. The descending triangle, combined with weak volume makes it more likely than not that price will break lower rather than higher. Volume picked up slightly yesterday, but the overall trend is still very weak.

The price action and MACD make me think we might experience the mirror opposite of what happened when price dropped down under $400. Price and MACD were fairly flat for a while and then price turned up fairly sharply.

Now price has been pretty flat and MACD has crossed below zero. Previously when price fell under $400 MACD was low and crossed above the zero line. So, this raises the possibility that Bitcoin price could see a sharp drop in price.
MoonTrader
2 years ago
I don't think this is a descending triangle. It's a wedge, and it may break out either way, but I think the bottom of the upward channel starting from $339 will act as the support in this triangle, meaning it's more of a wedge than a descending triangle.
+1 Reply
TerryKinder PRO MoonTrader
2 years ago
I won't disagree with you. I think it could be drawn a few different ways. Obviously the wedge is a longer-term view of it.

The first chart I published here (https://www.tradingview.com/v/4pBWY6TB/) was one modified from another user and it is a larger descending triangle.

The only thing I don't like about the wedge - and maybe I haven't drawn it right or seen the correct drawing - is that it doesn't seem to have very many touches on the bottom part of the wedge.

I can draw something more akin to a symmetrical triangle starting from around $555 on the bottom and $657 on the top, but don't know if that is any more helpful than what I have already drawn.

Maybe I am missing something on the wedge. Maybe you could point me to a chart to look at.
Reply
MoonTrader
2 years ago
This is my most recent idea. You'll notice 2 very important touch points on the bottom which also seem to line up well at two points on the top at ~$547 and $683 if you draw a parallel channel.
+1 Reply
MoonTrader
2 years ago
Choose carefully...
+2 Reply
TerryKinder PRO MoonTrader
2 years ago
Looks like it won't be too long before we see which direction the Bitcoin price will move.
+1 Reply
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