Without a visible end in sight to the current bear market and negative oversight news plaguing cryptocurrencies, as well as a consequential drop in trading volume since May, I expect the upsides of Bitcoin to be very limited for the next month with Bitcoin very likely to follow the descending triangle pattern illustrated in the chart. I expect the descending triangle to break sometime in August, which is about a month away from the day this was written.
I shall first explain the basis behind my analysis. Bitcoin price is now within a descending triangle pattern since May 19. For the base of the triangle, I used the May 19 low of approximately $30,000 (circled on graph) and the height of the rebound the following day of approximately $42,300. I deemed these two days to be the start of the current triangle trend, for $42,300 is the height of rebound of Bitcoin's May low. On two occasions the price of Bitcoin broke the descending triangle pattern on June 14 and June 22 (circled on graph), which initially made drawing the triangle confusing as these to extremities did not seem to fit into any visible price trend. However, in this current descending triangle these events make sense, for on the June 14 high, there was a catalyst in the news a few days earlier which led Bitcoin temporarily breaking the current descending triangle (El Salvador approved Bitcoin as legal tender). The June 22 price low below the descending triangle then can be seen as a correction of the June 14 high, and after these events we see the price of Bitcoin once again resuming its current descending triangle pattern. In other words, a news catalyst caused Bitcoin to temporarily break its trend pattern, however it was not strong enough to completely reverse the trend.
Assuming there will be no catalyst to break the descending triangle in the following month, I expect the price of Bitcoin to steadily decline within the descending triangle, with lows at the base of the triangle and highs at the heights of the triangle, until an inflection point is reached towards the end of the triangle. I have drawn in arrows an approximate direction of the price, paying attention to the Fibonacci retracement levels. I do not expect the upsides of Bitcoin to be above the top line of the descending triangle, however if the price does break above the triangle temporarily, I expect a high of around $36,600 and a low below the bottom of the triangle, most likely around the $28,600 support.
If the price of Bitcoin breaks below the descending triangle, which will most likely happen at or near the end of the descending triangle, I expect the price to at least drop to the support of approximately $28,600. Should that level fail, I expect the price to drop to anywhere within the circled area with a low of approximately $23,700. We should then see the price rebound, but the height of the rebound will depend on the the price low and any news catalyst that will occur during that time.
In summary, Bitcoin will most likely follow this descending triangle pattern for the next month until a catalyst creates a new low for Bitcoin.
Disclaimer: The ideas in this article are a subject of my own opinion. I am not offering advice or guidance for the buying and selling of cryptocurrencies. In no way am I guaranteeing that the predictions written in this article will happen. I am not liable for any losses following the predictions written in this article.
I shall first explain the basis behind my analysis. Bitcoin price is now within a descending triangle pattern since May 19. For the base of the triangle, I used the May 19 low of approximately $30,000 (circled on graph) and the height of the rebound the following day of approximately $42,300. I deemed these two days to be the start of the current triangle trend, for $42,300 is the height of rebound of Bitcoin's May low. On two occasions the price of Bitcoin broke the descending triangle pattern on June 14 and June 22 (circled on graph), which initially made drawing the triangle confusing as these to extremities did not seem to fit into any visible price trend. However, in this current descending triangle these events make sense, for on the June 14 high, there was a catalyst in the news a few days earlier which led Bitcoin temporarily breaking the current descending triangle (El Salvador approved Bitcoin as legal tender). The June 22 price low below the descending triangle then can be seen as a correction of the June 14 high, and after these events we see the price of Bitcoin once again resuming its current descending triangle pattern. In other words, a news catalyst caused Bitcoin to temporarily break its trend pattern, however it was not strong enough to completely reverse the trend.
Assuming there will be no catalyst to break the descending triangle in the following month, I expect the price of Bitcoin to steadily decline within the descending triangle, with lows at the base of the triangle and highs at the heights of the triangle, until an inflection point is reached towards the end of the triangle. I have drawn in arrows an approximate direction of the price, paying attention to the Fibonacci retracement levels. I do not expect the upsides of Bitcoin to be above the top line of the descending triangle, however if the price does break above the triangle temporarily, I expect a high of around $36,600 and a low below the bottom of the triangle, most likely around the $28,600 support.
If the price of Bitcoin breaks below the descending triangle, which will most likely happen at or near the end of the descending triangle, I expect the price to at least drop to the support of approximately $28,600. Should that level fail, I expect the price to drop to anywhere within the circled area with a low of approximately $23,700. We should then see the price rebound, but the height of the rebound will depend on the the price low and any news catalyst that will occur during that time.
In summary, Bitcoin will most likely follow this descending triangle pattern for the next month until a catalyst creates a new low for Bitcoin.
Disclaimer: The ideas in this article are a subject of my own opinion. I am not offering advice or guidance for the buying and selling of cryptocurrencies. In no way am I guaranteeing that the predictions written in this article will happen. I am not liable for any losses following the predictions written in this article.