Bitcoin formation TA - Descending Triangle -> Descending Wedge

stormingj (37)in #bitcoin • 7 years ago

Despite the successful activation of BIP 91 and a near guarantee of a successful segwit lock-in, Bitcoin's price failed to push to a new all-time high before settling into a new range between 2650 and 2800. At this time, this descending triangle that had begun to form indicated a bearish movement but the market seemed to remain optimistic from the lock-in high.

Instead, the formation fell out early, likely in part to FUD created by the looming UAHF for Bitcoin Cash. The resulting movement has instead created a new formation, a descending wedge. Like the triangle before it, this is an inherently bearish patttern and when regarded with the triangle before it leaves me with an ominous feeling.

Traders beware, while further drops may seem likely it's possible we could see a reversal here if the market becomes numb to the fear like it eventually grew to be with news from China. While I'm still personally going to hold out for a lower entry I'd caution against opening large shorts. Important signs to look for here will be significant breaks from the upper or lower trend line, backed up by volume.

#crypto #cryptocurrency