Bitcoin is currently painting two different possible scenarios and we would like to break down both the and case via easy technical patterns that everyone can understand.
Bullish Ascending Triangle:
- usually means Bitcoin might be in a continuation pattern and continue a measured move up to newer highs.
- The pattern completes itself when price breaks out of the triangle in the direction of the overall trend.
- This pattern indicates that buyers are more aggressive than sellers as price continues to make higher lows.
- A breakout and retest of the upper is considered a BUY signal by bulls.
Bearish Rising (Parallel) Channel:
- An upward pattern occurs when the price makes a series of lower lows followed by a series of lower highs. Typically the price should be contained inside the lines that connect these highs and lows.
- This is usually considered a consolidation phase and pressure will be put on top of the channel by sellers, and buyers on the lower.
- A Rising usually leads to a breakdown, which is considered the SELL signal.
We are currently seeing the breakout level being retested. Few quick buy ups are occurring, but it seems like the bears are ready to overtake the price soon. If not, the bounce should happen here, otherwise, expect further downside.
1. RSI is creating lower highs
2. Now we are in a parallel channel, and if broken, will confirm a bearish stance.