BTC is in a large descending triangle which is about to break down sometime during the next daily candle (which begins to form approx 3 hours from now).
Using Bulkowski's Descending Triangles as a guideline we can estimate a move to the downside, resulting in a price of $10,900.
To get this amount, we:
1. Compute the height from the highest peak (A) to the horizontal trendline (B) and then multiply it by the “percentage meeting price target”, which Bulkowski states is 54% for descending triangles that break to the downside.
2. Then we subtract the difference to the breakout price (the point at which price crosses the trendline) to get a price target (C).
Of course, we should acknowledge that this descending triangle could break to the upside and invalidate this idea, but several TA indicators show no bullish sentiment at present.
What this means for you:
Long term holders: use a possible drop to add to your positions in the long term.
Day traders or those looking to invest for the first time: be patient and wait for the descending triangle to finish forming first.
Shorters: You have a target to aim for here, taking your own risk/reward ratio into account.
If you are going to trade this move, do your own due diligence first.
Good luck and happy trading!
Using Bulkowski's Descending Triangles as a guideline we can estimate a move to the downside, resulting in a price of $10,900.
To get this amount, we:
1. Compute the height from the highest peak (A) to the horizontal trendline (B) and then multiply it by the “percentage meeting price target”, which Bulkowski states is 54% for descending triangles that break to the downside.
2. Then we subtract the difference to the breakout price (the point at which price crosses the trendline) to get a price target (C).
Of course, we should acknowledge that this descending triangle could break to the upside and invalidate this idea, but several TA indicators show no bullish sentiment at present.
What this means for you:
Long term holders: use a possible drop to add to your positions in the long term.
Day traders or those looking to invest for the first time: be patient and wait for the descending triangle to finish forming first.
Shorters: You have a target to aim for here, taking your own risk/reward ratio into account.
If you are going to trade this move, do your own due diligence first.
Good luck and happy trading!
