Bitcoin's ascending triangle!
On the 4 Hr chart, Bitcoin (BTC) has been crafting an intriguing ascending triangle since November 9th, following an impressive rally of approximately 40%. This surge catapulted BTC from around $27,000 to an impressive $37,900.
The ascending triangle is a continuation pattern, this means that the prior trend resumes itself once the ascending triangle is completed, which in this case is bullish for bitcoin as the prior trend was on the upside!
A key characteristic of consolidation patterns such as this is a decline in volume which is clearly visible in the chart. This suggests a period of stabilization before potential upward movement.
The first target after a successful breakout of an ascending triangle pattern is equal to 50% of the widest part of the triangle and the second target is equal to 100% of the widest part of the triangle. In our case, with the widest part of the triangle spanning from ~$34,800 to ~$37,900 (~$3,100), our first target is set at ~$40,000, and the second target at ~$41,500.
Keep an eye on the breakout level of ~$38,500 as this could pave the way for a move towards ~$40,000 level.
On the 4 Hr chart, Bitcoin (BTC) has been crafting an intriguing ascending triangle since November 9th, following an impressive rally of approximately 40%. This surge catapulted BTC from around $27,000 to an impressive $37,900.
The ascending triangle is a continuation pattern, this means that the prior trend resumes itself once the ascending triangle is completed, which in this case is bullish for bitcoin as the prior trend was on the upside!
A key characteristic of consolidation patterns such as this is a decline in volume which is clearly visible in the chart. This suggests a period of stabilization before potential upward movement.
The first target after a successful breakout of an ascending triangle pattern is equal to 50% of the widest part of the triangle and the second target is equal to 100% of the widest part of the triangle. In our case, with the widest part of the triangle spanning from ~$34,800 to ~$37,900 (~$3,100), our first target is set at ~$40,000, and the second target at ~$41,500.
Keep an eye on the breakout level of ~$38,500 as this could pave the way for a move towards ~$40,000 level.