Bitcoin - Triangle Pattern - 21k or 10k ?

Bitcoin - Triangle Pattern - 21k or 10k ?

Hey traders! I want to share with you my new BTCUSD -4.16% analysis, where I identified a triangle pattern in formation (if you don´t know how it works, please go to the end of this post). This triangle has been forming during the last few weeks, since the big drop that bitcoin -4.16% suffered near Christmas. As you can see in the chart, volume has been decreasing, which supports the idea of a triangle pattern in formation. I also would like you to notice that volume use to be bigger when price drops rather than when the price increase, which might give us some signals that price will break the triangle at the bottom. When breakout occurs (no matter what direction), there must be an important increment in Volume . Since we presume we don´t know which direction bitcoin -4.16% is going to move, we want to set up a Buy and Sell Stop Order. 


BUY STOP: 16.500 
TakeProfit: 21.000 

SELL STOP: 16.500 
TakeProfit: 10.000 

Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :) 

Symmetric Triangle Pattern - How does it works? 
In first place, you have to know that this kind of pattern most of the times has to be considered a bearish pattern . It belongs to the category "Continuation patterns", which means that once the pattern has consolidate and breakout has occured, price will return to its last trend. This pattern use to appear in bearish tendencies, however, sometimes it also can appear in bullish tendencies, which is exactly what we can see in the chart. Once the breakout has occured, we can expect a price movement equal to the height of the triangle. Another important thing you have to have in consideration, is that volume always has to decrease during the formation of this kind of patterns, but, when breakout occurs, it must heavily increase. 

Are you interested in Technical Analysis? 
I recommend you the John Murphy´s book: Technical Analysis of Financial Markets. It is a great introductory book. 

Do you want me to analyze an specific coin? 
I'm all ears, please contact me :) 

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BTC: 1EWAzRdyZa5DBSTnsnzNfjvxPbE3HkszzH 
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If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)

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