Poll: More Than Half of Bitcoin Investors Expect Triangle Breakout

Bitcoin price has for months now been locked inside what many crypto analysts believe to be a triangle pattern. However, they are torn as to the type of triangle the pattern is – descending or symmetrical.
Crypto investors themselves who are also watching the pattern are also torn, not by the shape of the formation, but on which direction it may resolve. However, the largest portion of crypto investors and traders are expecting the chart pattern to break to the upside, which could potentially cause Bitcoin price to retest its former all-time high at $20,000.
Poll: Nearly 60% of Crypto Traders Expect Bitcoin Formation to Break Up
There’s much confusion across the crypto market currently. Bitcoin price has been said to be starting its next bull run, yet the first-ever crypto asset is currently consolidating in a tight trading range, suggesting there is indecision in the market, and that bears may be once again taking control.
Related Reading | Bitcoin Price Forming Descending Triangle, Market Showing Consumption of Demand
The result is a triangle forming on higher timeframes on Bitcoin price charts. Analysts are torn as to if the formation is a descending triangle or symmetrical triangle – with some even saying that it’s a bull flag and not a triangle at all.
Just as conflicted are crypto investors and traders themselves, according to a recent poll shared by crypto analyst Josh Rager. The poll reveals that as much as 59% of crypto investors and traders are expecting the triangle pattern to resolve to the upside, while the remaining 41% expect the formation to breakdown, and lower prices to be reached.

The ultimate question :
Bitcoin breaks out of this large compressed pattern (triangle)
— Josh Rager (@Josh_Rager) September 13, 2019

According to Bulkowksi, known for being the definitive expert when it comes to identifying chart patterns, symmetrical triangles are continuation patterns that typically resolve to the upside. This would suggest that if Bitcoin price is indeed in a symmetrical triangle, it’ll do as crypto traders are expecting and break upwards.
However, Bitcoin could also be in a descending triangle pattern. Most believe that descending triangles are bearish structures due to the 2018 bear market being a massive descending triangle that broke down, taking Bitcoin price to its final bottom in December, but Bulkowski’s data shows that even descending triangles break upward as much as 53% of the time – which gives a higher probability the current trading range breaking to the upside, as the poll respondents believe.
Related Reading | Crypto Analyst: Bitcoin Price Forming Symmetrical Triangle, 60% Chance of Continuation
Should Bitcoin price break down, the structure would likely be confirmed as a descending triangle much like what was seen during the 2018 bear market, and it would make the contrarian group of crypto traders profitable, given how much of the market is currently expecting bullish continuation from Bitcoin.
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Analyst: Bitcoin Could Dump to $6,500 to Maintain Price Parabola

As the Bitcoin consolidation continues, traders and analysts are scouring the charts again looking for the next direction. In the short term most are of mixed opinion but one analyst has predicted a big fall before any upward price momentum is resumed.
Bitcoin Biding Its Time
For more than two months now BTC has been range bound between mid-$9,000s and low $12,000s. The channel appears to be tightening with very little movement over the past week, but this has happened before. Price action is not linear and the asset is still highly volatile which means a larger swing could occur before any confirmed trend direction takes place.
Trader and analyst ‘dave the wave’ has maintained that in order to stick to its growth curve, Bitcoin will need to fall back first.
“Some are wondering why BTC can’t do sideways for a significant period of time [across to the growth curve at this level]. Problem is BTC is volatile and doesn’t do sideways for long. This parabola and correction has always been about chewing up time for it to meet the curve imo”

Some are wondering why BTC can't do sideways for a significant period of time [across to the growth curve at this level]. Problem is BTC is volatile and doesn't do sideways for long. This parabola and correction has always been about chewing up time for it to meet the curve imo pic.twitter.com/c3qBiu853F
— dave the wave (@davthewave) September 9, 2019

A move back to that curve would send prices back to the mid-$6,000 price range. Coincidentally this was the most traded price for BTC during 2018. A move of this magnitude would mark a correction of over 50% and put Bitcoin back into bear market territory.
The time frame also lines up with the halving event in May 2020 which is likely to be bullish. What does appear evident from the chart is a fractal pattern of a descending triangle which, as we so painfully saw last year, dumped massively upon conclusion.
Descending Triangle
As legendary investor, Peter Brandt, pointed out though, the chart pattern is not complete until it has fully played out.
“In full disclosure, I must inform you that I am long BTC as a position trader. Yet, as a swing trader I must respect classical charting principles. This descending triangle is NOT a descending triangle until it is completed.”
At the time of writing the consolidation is continuing with BTC falling back over the past few hours to around $10,300 during the morning’s Asian trading session. The weekend high of $10,600 could not be held as the trading range tightened. A fall back below five figures is looking imminent again but the overall pattern on longer time frames is still sideways until a major breakout occurs.
The conclusion of the descending triangle this week could provide that momentum.
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Bears Beware: Bitcoin Price Might Range For Another Month

Bears are rejoicing now that Bitcoin price is back below $10,000 and at risk of falling further to retest former lows as support.
But while recent Bitcoin price action may suggest that bears have resumed control over the short-term trend, bulls haven’t given up the fight. The game of tug-of-war may continue to go on for another month before exhausting this trading range and moving along to another.
Max Pain Scenario: Another Month of Sideways Bitcoin Price Action
Bitcoin price has been trading between decreasingly lower highs and support at $9,300 over the last two or so months, forming what appears to be a descending triangle chart pattern. These chart patterns are typically bearish and suggest a break to the downside is imminent.
Related Reading | EOS, Ethereum, and Litecoin Lead Massive Bitcoin Dump to $9,500 
Bears know this, are already euphoric now that Bitcoin price is below $10,000, and are expecting a far deeper correction from here where they can buy Bitcoin for cheaper prices.
But bears need to beware that bulls could once again support Bitcoin price at current levels and push price back up to the top of the triangle. A fast, powerful move back toward $10,000 could surprise bears and squeeze late shorters, propelling Bitcoin price back upward towards $11,000 – which coincides with the triangle’s descending resistance.
One crypto analyst believes that not only is this scenario likely, but it could also continue to repeat throughout the rest of the month, ranging inside the descending triangle.

Can we break down? Yes.
Good to be aware that there is still al ot of room not to tho.
Maybe it will range for another month pic.twitter.com/SIPigc3E4n
— Lord Catoshi (@LordCatoshi) August 30, 2019

Crypto traders like to talk about which scenario – up or down – would be the “max pain scenario,” however, what might be the most painful for investors and traders, isn’t a break to the downside or upside, it is more choppy, sideways trading.
When finanical assets like Bitcoin trade sideways for an extended period of time, market participants grow tired of trading the chop. The tightening range also becomes less and less profitable, so trading volume diminishes. Traders, in this case, will either exit all positions, or simple set stops and let the trend choose the eventual direction.
This often results in an extremely powerful move, once the final direction is chosen, as trader’s stops are hit and sidelined traders begin to take positions quickly in reaction to the trend change or continuation.
Related Reading | Bears in Charge as Bitcoin Price at Risk of November 2018 Style Dump
Previously, another analyst predicted sideways trading for the remainder of the year, not just another month. Should this occur, interest in BTC will wane significantly until the mid-term trend direction is chosen.  A break to the upside at that point would almost certainly cause serious FOMO – enough for Bitcoin price to retest its previous all-time high at $20,000.
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Bitcoin Price Forming Descending Triangle, Market Showing Consumption of Demand

As Bitcoin price struggles to maintain strength above $10,000 but is unable to push below $9,200, the crypto asset’s price chart has formed what appears to be a descending triangle – a bearish continuation pattern, that does have potential to break to the upside.
The formation shows many similarities to a descending triangle that formed during the 2018 bear market, that eventually sent Bitcoin plummeting to its bottom around $3,200. One analyst believes that although the market is showing demand for Bitcoin, that demand is being consumed ferociously and once that demand begins to fizzle, the selling pressure may finally get the best of bulls buying the dip.
Bitcoin Price Forms Descending Triangle, Target is $7,500, But $6,000 is Possible
Bitcoin price has stagnated in recent days, unable to choose a clear direction. The leading crypto asset has been locked in an increasingly tightening range and has not had the bullish momentum to break above $10,200, yet bearish sell pressure hasn’t been enough to break below $9,200. The bouncing back and forth between peaks and troughs has caused Bitcoin price to form a descending triangle, a chart pattern that could have a target of $7,500 if confirmed.
Related Reading | Bitcoin Price Rejected From $10K, Or the Start of a Bullish Reversal? 
Crypto analyst Dave the Wave – known for his long-term trend analysis using moving averages, the MACD, and most importantly an emphasis on Bitcoin’s logarithmic growth curve – is long-term bullish on Bitcoin, but in the “medium-term” expects Bitcoin price to fall out of the descending triangle formation to around $7,500 where a bounce could happen.

The dreaded descending triangle…. pic.twitter.com/CxSpgXTMJw
— dave the wave (@davthewave) July 31, 2019

In the past, the analyst perfectly called a bounce off the 200-week moving average. Here he expects the bounce at $7,500 to be nothing more than that – a bounce. After that, another “further drop at a later date” could bring the entire correction total to 50%, or as much as 61%.
The analyst advocates averaging in around the 50% point being a wise strategy. A total 61.8% drop – a common Fibonacci retracement level – would take Bitcoin price to $5,200 as the final bottom. A 50% drop from the rally high of $13,800 would be $6,900. Neither drop would put Bitcoin’s previous bear market bottom in jeopardy.
Analyst: Supply Consuming BTC Demand, What Happens If Demand Runs Out?
Adding further credence to the descending triangle playing out similarly to the formation that occurred during the 2018 bear market that caused Bitcoin price to break below what was believed to be the bottom at the time at $6,000, falling to its eventual bottom at $3,200.

My current higher timeframe view on Bitcoin pic.twitter.com/llqhNi8a1j
— Mr. TA (@Trader_M4tt) August 1, 2019

Another analyst, says that although Bitcoin has bounced off the “daily demand” it has done so “ not very convincingly” and current price action appears to be “consumption of demand.” The analysts compares the current price action consuming the demand to the same price action around $6,000 – also where that demand eventually ran out in 2018, causing Bitcoin to experience a massive drop.
Should that demand be overcome by supply, the same scenario could play out. However, that $6,000 price level is now acting as support once again, and is likely to stay that way indefinitely.
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