Bitcoin Price Analysis: Approaching the end of the triangle – Are we getting a big leg up or a big leg down

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Gentlemen, friends, traders, hodlers. I have been anticipating a potential fall from this zone for quite some time and most of my analysis has been right on the spot.

Today I want to take a deeper dive in the medium-term future of BTC.

We started forming a descending triangle in late of June, and since then we are making lower highs and lower lows on the 1 Day timeframe.

As you can see in this chart, we are slowly approaching the end of the triangle, and this may set as a catalyst for either c.

Market sentiment still points down, not being able to break 11k for quite some time.

Let’s get to the technical. We can see in the chart that our 123 EMA is acting as clear support (orange line) for the past days and now corresponds with the lower triangle line.

Our swing trade indicator shows us what I have pointed earlier, lower highs and lower lows over the past few weeks, but over the past 3 days, we are looking at higher highs and higher lows.

Our Ichimoku indicator show as o possible oversold zone (bottom of the chart, red line area) defining a potential reversal of the trend. Ichimoku is one of the best indicators out there and performs quite well for our favorite coin. This is the long scenario, on the 1 Day timeframe, breaking the triangle should take us to 12,600$, but let’s take a dive into lower time frames as well:

To achieve that level, we must break the 11,680 golden line, but even before that, we must break the 10,900 level. Breaking the triangle will only get us so far. We are currently sitting on the 0.236 Fibonacci retracement level, which acts as a support for this day. If we hold this level and slowly move up we have a good chance to achieve that level. If we manage to break on a higher timeframe the purple line than we are in for an ecstatic ride.

Now the short scenario, which at the moment seems to be the one with the highest probability.

Breaking the triangle downwards means breaking the 123  Daily Ema, and that is not a good sign. We have another support zone in 9k’s (the 9089 golden line) but most likely it will not hold because of the huge sellout that is going to happen, and that will take us to the 223 ema area meaning 8300-8400 $. That could be a devastating blow for BTC, many professional and famous traders are saying that if we break the 8k’s pack up your stuff and go, but we will live to see it.

Going to 8,400 would also mean that the famous CME gap is filled, but that is a joke in my opinion, (although all the gaps have been filled up until this point).

Time will tell us, and the market always regulates itself.

Hope this will help you and give you some hindsight in your future trades!

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Sabin Pacaleanu

Miner since 2015, Bitcoin Trader/Analyst, BitBase Founder

Disclaimer: All content found on 7bitcoins.com is only for informational purposes and should not be considered as financial advice. Do your own research before making any investment. Use information at your own risk.

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