Bitcoin appears to be compressing near all-time highs in what looks like an ascending triangle. Previously, Bitcoin would pierce the ascending triangle to the downside and the result would be the liquidation of all of the leverage in the system, then the price of Bitcoin would proceed to chop around more before eventually moving higher. Essentially, the ascending triangle pattern would be extended by double the amount of time, give or take. I have found this example in many uptrends in crypto and specifically in Bitcoin.
While this scenario could certainly play out again, I lean more toward a sooner breakout before this type of scenario happens. Why? Quite simply - ETFs and big money have entered the market. A lot of these players are accumulating bitcoin for the long term in spot. The brokers will have a new fear to face besides waiting to liquidate people, what if they can't? It will force them to cover and the price could start driving higher sooner. This fact alone could lead Bitcoin to not follow its "usual" path of a breakdown first and an extension of its compression pattern and instead break to the upside and continue its journey further north.
For now, we wait and see what happens.
Cheers,
TCD
While this scenario could certainly play out again, I lean more toward a sooner breakout before this type of scenario happens. Why? Quite simply - ETFs and big money have entered the market. A lot of these players are accumulating bitcoin for the long term in spot. The brokers will have a new fear to face besides waiting to liquidate people, what if they can't? It will force them to cover and the price could start driving higher sooner. This fact alone could lead Bitcoin to not follow its "usual" path of a breakdown first and an extension of its compression pattern and instead break to the upside and continue its journey further north.
For now, we wait and see what happens.
Cheers,
TCD
Comment:
Looks like we got our answer, typical Bitcoin ascending triangle has been dismantled, if things follow like they usually do, it will take another month of consolidation before Bitcoin moves higher in any meaningful way and forms a longer ascending triangle pattern
Comment:
If this flag holds, it will give us a target of 100k. Which I believe is a very important psychological level as well. *If* these areas hold, it will most likely take another month before we get a move back to the upside, and longer to get to 100k.
Opinions on Chart's, not financial advice.
