ðĨ Bitcoin Found Potential Bottom: Bullish Scenario
During yesterday's dump, it appears that BTC found a local bottom around 31k. Looking at the overall picture, it's of great importance that the 30k support held.
If we draw a line between the last two bottoms at 30k and 31k, we can clearly see a triangle pattern emerge. This triangle pattern might just be the reversal pattern that we need. Assuming that BTC will follow the pattern, we might see bullish price action in the coming 24 hours, followed up by either a break out towards 40k or a (last) decline towards the triangle support around 33k. I deem the latter option more plausible.
A word of caution about this pattern. The overall trend is clearly bearish. One can easily see that we're trading in a bearish channel at the moment. As long as that channel holds, we need some kind of bullish catalyst to switch the trend from bearish to bullish.
Historically, market capitulations in BTC are indicators of strong bullish reversals, which might just be the catalyst we need.
Happy trading!
If we draw a line between the last two bottoms at 30k and 31k, we can clearly see a triangle pattern emerge. This triangle pattern might just be the reversal pattern that we need. Assuming that BTC will follow the pattern, we might see bullish price action in the coming 24 hours, followed up by either a break out towards 40k or a (last) decline towards the triangle support around 33k. I deem the latter option more plausible.
A word of caution about this pattern. The overall trend is clearly bearish. One can easily see that we're trading in a bearish channel at the moment. As long as that channel holds, we need some kind of bullish catalyst to switch the trend from bearish to bullish.
Historically, market capitulations in BTC are indicators of strong bullish reversals, which might just be the catalyst we need.
Happy trading!
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Before the trend can shift I'm expecting a small pull-back towards 35k-ish. Next major resistance: 42k