This_Guhy

BTCUSD Big Picture: Descending Triangle Top & 200 SMA Oppression

Short
KRAKEN:BTCUSD   Bitcoin
Descending triangles are typically bearish continuation patterns when the price slams down against support and bounces (typically three times) less and less before breaking through support. From time to time we see the potential that a descending triangle exist when the price actions slams up mightily against resistance and then comes back down forcefully against support, and that is what I think we are seeing here. Since this is crypto and things can get a little unorthodox we could see two things; either the pattern will keep its
  • bearish nature and the price drops roughly the distance from the peak to the base
  • continuation nature and price pumps.
I have made the case that this uptrend will end in a new low due to the hidden bearish divergence. I've linked the post and here is the chart below:
Further, the 200 SMA has been pushing the price down since late March. These are not the conditions I would expect us to break through the 200 SMA. We have a typically bearish chart pattern, the indicators are screaming bearish at us, and we are facing some of the strongest resistance we could expect from the 200. This pattern, if I am correct, has about 3 days before it breaks down. I would definitely expect a false break out either way while the price action attempts to break the ankles of anyone defending their long or short positions to tightly (metaphors are not always my strong suit).

This isn't financial advice, so forth and so on. And again I had to paintbrush the 1D SMA onto the 1h chart because I don't know how to have a different timeframe moving average on a chart. If you know how, please let me know.

And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?

~Nathan Explosion
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.