BTC forming a classic Descending Triangle formation.
Typically 5 touches of support/resistance (combined) would be considered confirmation of the pattern, we're currently sitting at 7/8 touches (depending on your view), for a fully formed pattern of lower lows and a support line that is holding so far.
This is generally considered a continuation pattern, where we would expect that as the lower lows continue and we keep testing the support line, eventually it would break and continue lower.
However, as is the nature of Bitcoin, a bullish surge is always a possibility and a bullish break of this pattern can be a catalyst for a significant move to the upside.
A break above the dashed green line would represent a new high in the pattern and a bullish break, I would look to go long if we break this point with momentum.
Conversely, a break below the dashed red line would be the more expected outcome, leading to a continuation of downward trend.
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Typically 5 touches of support/resistance (combined) would be considered confirmation of the pattern, we're currently sitting at 7/8 touches (depending on your view), for a fully formed pattern of lower lows and a support line that is holding so far.
This is generally considered a continuation pattern, where we would expect that as the lower lows continue and we keep testing the support line, eventually it would break and continue lower.
However, as is the nature of Bitcoin, a bullish surge is always a possibility and a bullish break of this pattern can be a catalyst for a significant move to the upside.
A break above the dashed green line would represent a new high in the pattern and a bullish break, I would look to go long if we break this point with momentum.
Conversely, a break below the dashed red line would be the more expected outcome, leading to a continuation of downward trend.
Please like, follow and share your opinion below.
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