The chart below looks at Bitcoin on two different time frames. The chart of the left looks at Bitcoin over the past 5-years, reflecting that it remains inside of bullish rising channel (1), as the trend remains higher. It hit the top of this rising channel a couple of months ago at (2), where it created an important bearish reversal pattern.
The chart on the right is of Bitcoin over the past 5-months, where it might have created a bearish descending triangleat (3).
CLICK ON CHART TO ENLARGE
Over the past 5-months, Bitcoin might have created a descending triangle pattern inside of each line (3). This pattern is created by a series of lower highs and flat bottoms.
As of today, Bitcoin is testing “dual support” at (4), with one of the support lines being the potential bottom of the descending triangle pattern.
At this time, “Support is Support” at (4) until broken!
If support would happen to give way at (4), the “measured move” of the descending triangle, suggests that Bitcoin could trade down to the 6,000 level.
Bitcoin bulls want to see it “Hang On” to dual support at (4)!!!
Chart pattern analysis with brief commentary:
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