BTC has formed an Ascending Triangle in a DowntrendWhat is Happening Here?
If we take a look at Bitcoin, it's pretty interesting right now: we can observe an ascending triangle just formed. But this pattern took shape after a sharp drop in price.
An ascending triangle is a bullish continuation pattern:
- The resistance line stays horizontal (flat top).
- The support line is rising, creating higher lows.
So what does this mean?
This indicates that buyers are gradually pushing prices higher while sellers are consistently defending the resistance level.
And often with this pattern, the buying pressure overwhelms the sellers, causing a breakout to the upside.
🔹 Breakout expectation:
- Wait for breakout confirmation always! (strong candle close above resistance with volume), and/or on a retest of the broken resistance (now acting as support).
- With this pattern, if it breaks above strongly, the target can typically be measured by taking the height of the triangle and adding it to the breakout level.
🔹 Risk Factors:
- False breakouts can occur (price temporarily breaks resistance but falls back inside).
- If the pattern fails and price breaks below the rising trendline, it may signal bearish weakness.
✅ The reliability of the pattern increases on higher timeframes and with strong breakout volume.
In summary
An ascending triangle shows the following: Buyers are showing strength with rising lows, while resistance is being pressured repeatedly. A confirmed breakout above resistance could drive price toward a psychological target. Waiting for a strong breakout and possibly a retest helps reduce false signal risk.
Not financial advice, just sharing my thoughts on the charts.
Trade safely 😊
