How a symmetrical triangle will affect Bitcoin dynamics

How a symmetrical triangle will affect Bitcoin dynamics

How to Use Symmetrical Triangle Price Patterns

Contents

How the symmetrical triangle will affect the dynamics of bitcoin
CONTENT

  • Bitcoin price is traded inside a symmetrical triangle.

  • Resistance and support are located at $ 11200 and $ 10200, respectively.

  • Technical indicators on the daily chart are giving bullish signals.

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The bitcoin rate is completing a period of consolidation within a symmetrical triangle. The nature of the breakout of this pattern will determine the further direction of the currency movement.

How a symmetrical triangle will affect Bitcoin dynamics

Symmetrical triangle

Since hitting a low of $ 9825 on September 8, Bitcoin (BTC) has been trading within a symmetrical triangle. This pattern is considered to be technically neutral. At the time of writing, the price was approaching the convergence point of its support and resistance.

To date, the price has reversed three times from the support line. Now the price is trading between Fibo levels 0.617-0.786. The last time the reversal occurred in this range, so now these levels can also become possible levels of completion of the correction.

How a symmetrical triangle will affect Bitcoin dynamics

A decline below the support line and / or the low of $ 10,380 (the second blue arrow in the chart below) could mean that Bitcoin has made a bearish breakout of the triangle. Meanwhile, rally above $ 10,805 high would indicate bullish breakout.

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BTC chart. Source: TradingView

On the daily chart, the main support and resistance levels are located at $ 11,200 and $ 10,200, respectively..

However, a bullish / bearish breakout of the full height of the pattern could push price back much higher / lower. Presumptive targets could be $ 11,900 and $ 9400, respectively.

BTC chart. Source: TradingView

What came before

On the daily chart, technical indicators are giving a set of signals that previously caused a steady rise.

Stochastic Oscillator formed a bullish crossover, and soon the MACD approached the bullish zone. When this happened the previous three times, the price rallied by 55%, 75% and 36%, respectively, as soon as the MACD indicator entered the green zone.

BTC chart. Source: TradingView

What will happen

In our previous Bitcoin prediction, we assumed:

“BTC started forming an impulsive bullish wave structure (orange on the chart) on September 9 and is currently in the wave 3 stage.”.

This scenario is still the most likely, but the presence of the triangle forces us to consider another alternative scenario.

BTC chart. Source: TradingView

Since the price completed its bearish move on September 8, there is a possibility that the triangle is a larger wave B that the market completed yesterday high at $ 10,805 (green line). In this case, the price will soon make a bearish breakdown of the triangle and decline in the direction of $ 9400.

A bullish break above the $ 10,805 high will reverse this scenario, and an engulfment of the $ 10,380 low (red line) will increase the likelihood that our assumptions are correct..

BTC chart. Source: TradingView

Thus, the more likely scenario is still a bullish trend in Bitcoin, however, the inability of the price to absorb the maximum of $ 10,805 could cause a bearish breakout of the triangle currently observed on the chart..

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information, contained on our website, published in good faith and objectivity, and for informational purposes only. The reader bears the full responsibility for any actions, committed by him on the basis of information, obtained from our website.

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