Bitcoin Price Descending Triangle. Will Price Move Up or Down?
Bitcoin price has formed a descending triangle pattern. As of today price has touched the descending portion of the triangle 3 times and the horizontal portion twice.
Based on the length of the triangle, it could take until about the end of the month for price to exit the upper or lower boundary. Price should continue in the same direction it exits from the triangle (if it exits out the top, price will move up and if it exits out the bottom price will move down).
Currently watching 4 indicators which are all positive right now:
1) Premier Stochastic Oscillator
2) Elder Impulse System
3) BBImplulse Indicator
4) MACD
I have set most of these indicators for a shorter time window in order to pick up a change of price direction more quickly. You could make this your own and tweak the time windows to see how they affect each indicator.
Volume (not shown here) is still relatively light. If it continues to be light, my expectation would be for price to resolve to the downside. There appears to be quite a bit of price support in the $550-$560 range so I wouldn't necessarily expect the price to drop below that range right away.
Current strategy: If there is another green candle tomorrow with the price above today's high price, and the indicators remain positive, I will likely buy. Would likely set stop at or below low of previous green candle.
Price has had quite a bit of difficulty breaking above the $660-$680 range, so a break through the upside of the triangle won't be too significant until $680 is broken. At that point I believe price could accelerate higher.
Based on the length of the triangle, it could take until about the end of the month for price to exit the upper or lower boundary. Price should continue in the same direction it exits from the triangle (if it exits out the top, price will move up and if it exits out the bottom price will move down).
Currently watching 4 indicators which are all positive right now:
1) Premier Stochastic Oscillator
2) Elder Impulse System
3) BBImplulse Indicator
4) MACD
I have set most of these indicators for a shorter time window in order to pick up a change of price direction more quickly. You could make this your own and tweak the time windows to see how they affect each indicator.
Volume (not shown here) is still relatively light. If it continues to be light, my expectation would be for price to resolve to the downside. There appears to be quite a bit of price support in the $550-$560 range so I wouldn't necessarily expect the price to drop below that range right away.
Current strategy: If there is another green candle tomorrow with the price above today's high price, and the indicators remain positive, I will likely buy. Would likely set stop at or below low of previous green candle.
Price has had quite a bit of difficulty breaking above the $660-$680 range, so a break through the upside of the triangle won't be too significant until $680 is broken. At that point I believe price could accelerate higher.