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Bitcoin Bulls Getting Fooled?

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
After posting nearly 25% gains last week Ethereum is now taking a breather before potentially heading higher to meet its inverse head & shoulder target. Bitcoin on the other hand...well it continues to consolidate sideways within a symmetrical triangle formation.

I won't pretend to know which direction I think the market is heading. Symmetrical triangles are potentially the most difficult pattern to trade. In fact, these patterns are commonly found at the end of trends as well.

My inclination is that there is a greater possibility of breaking down than breaking up. Why? I look at the other markets around us. I liken Bitcoin as a leading indicator. So it is possible Bitcoin is currently distributing.


In the chart above I have two items listed. The triangle pattern and the bullish channel that has been respected as support and as resistance. In my view, the channel hold more weight than the triangle. A daily close below the channel could be the beginning of a bearish trend reversal for the overall market.

It hard to have a bias when price is in such a triangle pattern . However, I'll remain true...Bias: Bearish .

Comments

Nice chart
+1 Reply
RocketBomb RocketBomb
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