BTC has been coiling up over the last couple of weeks and is due for a major move. This next move will potentially signal the sound of next bull run or bring BTC back to the crypto abyss.
Looking at the chart, we can clearly see 3 major chart patterns. The first is the ascending triangle, in traditional markets this chart pattern is considered a continuation pattern; in this case very bearish. If the ascending triangle follows through then we can see BTC testing its "bottom" around $3300 and potentially go lower.
The second pattern that has formed is a rising wedge. In traditional markets this is considered to be a bearish pattern. If this is the case; we can potentially have a bearish breakout and follow through to retest our "bottom".
The last and arguably most important pattern that needs to be looked at is volume. Volume has been decreasing and is at similar levels that were seen before the drop down from $6000. Low volume tends to cause big moves. More concerning there is new data suggesting that unregulated exchanges are wash trading and faking their volume. If this is the case then it can be safe to say that the recent bullish momentum we have gotten is inorganic.
Considering all this overwhelming bearish data, It would not be a a surprise to see BTC retest its current "bottom" and crawl back to the crypto abyss.
However, If BTC has any true bullish momentum then we need to see it make a clear breakout out of the base of the ascending triangle and make it's first higher high.
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*This information is not trading advice and is to be used for educational purposes only!
Looking at the chart, we can clearly see 3 major chart patterns. The first is the ascending triangle, in traditional markets this chart pattern is considered a continuation pattern; in this case very bearish. If the ascending triangle follows through then we can see BTC testing its "bottom" around $3300 and potentially go lower.
The second pattern that has formed is a rising wedge. In traditional markets this is considered to be a bearish pattern. If this is the case; we can potentially have a bearish breakout and follow through to retest our "bottom".
The last and arguably most important pattern that needs to be looked at is volume. Volume has been decreasing and is at similar levels that were seen before the drop down from $6000. Low volume tends to cause big moves. More concerning there is new data suggesting that unregulated exchanges are wash trading and faking their volume. If this is the case then it can be safe to say that the recent bullish momentum we have gotten is inorganic.
Considering all this overwhelming bearish data, It would not be a a surprise to see BTC retest its current "bottom" and crawl back to the crypto abyss.
However, If BTC has any true bullish momentum then we need to see it make a clear breakout out of the base of the ascending triangle and make it's first higher high.
Thanks for reading!
If You like this TA please hit the LIKE button!
Also, leave a comment with Your thoughts and feedback!
*This information is not trading advice and is to be used for educational purposes only!