Measured move on XBTUSD coincides with support at 4992
After almost 3 months, 90 days to be precise, this week XBTUSD finally broke through the bottom of the descending triangle it has been in since June. And it did so rather violently.
It is now discussed if the bottom has been reached, or if there is more room to the downside.
I have bad news for you. According to traditional TA, the price target of a break down of a descending triangle is the height of the triangle measured from the point the triangle broke.
Of course nothing is traditional with Bitcoin, but what really worries me that if you project this move (4430 points) on the chart of XBTUSD, you end up exactly on a resistance level
formed on the way up this spring at 4992 USD. This kind of "coincidences" adds to the reliability of the chart pattern and I really like making my trading decisions on them.
And although it might not be nice seeing Bitcoin losing more than 50% of its value again, it might become a nice "buy the dip" opportunity again.
Disclaimer:
This is just an idea of what might or might not happen and is by no means trading advice. Always trade on your own risk and do your own analysis.
It is now discussed if the bottom has been reached, or if there is more room to the downside.
I have bad news for you. According to traditional TA, the price target of a break down of a descending triangle is the height of the triangle measured from the point the triangle broke.
Of course nothing is traditional with Bitcoin, but what really worries me that if you project this move (4430 points) on the chart of XBTUSD, you end up exactly on a resistance level
formed on the way up this spring at 4992 USD. This kind of "coincidences" adds to the reliability of the chart pattern and I really like making my trading decisions on them.
And although it might not be nice seeing Bitcoin losing more than 50% of its value again, it might become a nice "buy the dip" opportunity again.
Disclaimer:
This is just an idea of what might or might not happen and is by no means trading advice. Always trade on your own risk and do your own analysis.