Bitcoin still enveloped a long term ascending triangle
Last week we spoke about the pennant formation that Bitcoin had broken out of we have that particular formation drawn in blue lines on our first chart. What is also evident on that chart is a pennant formation still in play drawn in red. Most importantly the highlighted ascending triangle formation highlighted in yellow formed by the same support line as the blue pennant and the resistance line being our long term projected price average drawn as a dashed green line. This long term projection line has been hit 24 times in the past 9 months, of which three are recent occurrences. In our second chart the highlighted area shows how you could make a case that BTC futures are in a rising wedge pattern.
According to Investopedia a rising wedge “usually occurs when a security’s price has been rising over time, but it can also occur in the midst of a downward trend as well, rising wedge patterns indicate the more likely potential of falling prices after a breakout of the lower trend line. Traders can make bearish trades after the breakout by selling the security short or using derivatives such as futures or options…”
Usually however a bearish rising wedge pattern will contain declining volume on the way up but our third chart illustrates how since we hit the price bottom our yearly low on March 12th. Since that point we have seen four spikes in volume each at a higher price point. The last spike also coincides with the breakout from the pennant formation drawn in blue that happened on June the 3rd. Al of this is shown on our third chart.https://thegoldforecast.com/sites/default/files/bitcoin/2020/monday_chart_1.jpg
https://thegoldforecast.com/sites/default/files/bitcoin/2020/monmday_chart_1.jpghttps://thegoldforecast.com/sites/default/files/bitcoin/2020/monday_chart_3.jpg
According to Investopedia a rising wedge “usually occurs when a security’s price has been rising over time, but it can also occur in the midst of a downward trend as well, rising wedge patterns indicate the more likely potential of falling prices after a breakout of the lower trend line. Traders can make bearish trades after the breakout by selling the security short or using derivatives such as futures or options…”
Usually however a bearish rising wedge pattern will contain declining volume on the way up but our third chart illustrates how since we hit the price bottom our yearly low on March 12th. Since that point we have seen four spikes in volume each at a higher price point. The last spike also coincides with the breakout from the pennant formation drawn in blue that happened on June the 3rd. Al of this is shown on our third chart.https://thegoldforecast.com/sites/default/files/bitcoin/2020/monday_chart_1.jpg
https://thegoldforecast.com/sites/default/files/bitcoin/2020/monmday_chart_1.jpghttps://thegoldforecast.com/sites/default/files/bitcoin/2020/monday_chart_3.jpg
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