)’s breakout from this point forward is inevitable. The price has been consolidating in a bullish pennant
since last month. No investor or analyst who draws bullish pennants
like these on a chart presents a bearish
case. In that case, they have to rely on a triangle that extends a little further. However, that triangle has an equal chance of breaking to the upside. The bullish pennants
visible on the above chart only break to the upside, in normal market conditions. History is a wonderful teacher in technical analysis
. This is why the more data we have, the more accurately we can assess probabilities. Anyone can highlight possibilities. There are a thousand of them on every chart. The purpose of technical analysis
is to explore probabilities not possibilities.
As we can see on the above daily chart
for BTC/USD, this is not the first time Bitcoin
) has formed a bullish pennant
) formed an even larger bullish pennant
between June and July. The price traded inside the pennant
and broke out to the upside in mid July as expected. The same thing is happening again, but most amateur investors think maybe this time it will be different. On that, Sir John Templeton says, “The four most dangerous words in investing are: this time it’s different”. Throughout the history of financial markets, we have seen the same things happen over and over again. Ray Dalio, the founder of Bridgewater Associates has written books about it. Just as the same things happen over and over again, we make the same mistakes over and over again.
Read Further: https://cryptodaily.co.uk/2018/10/bitcoi...