🔥 Thought Experiment: Would You Buy This Chart?

8 ביוני 2022

In today's analysis I want to shed some light on an interesting chart I found.

As seen on the chart, this asset had a strong bearish trend during 2020 and early 2021. After forming a double bottom structure, the asset has been in a strong uptrend. So, in 1.5 years this asset has seemingly formed a reversal pattern. Inside this reversal pattern, you can clearly see an ascending triangle pattern (purple).

Classically, ascending triangles are bullish break out patterns. So, we're aiming at an eventual bullish break out. We can break out from here, or we can break out after retesting the triangle's bottom support line.

Would you buy this chart? I know I would.

Note: this is the inversed chart of Bitcoin on the daily time frame. The idea behind this analysis is to let you see the chart in a completely different way to remove any potential bias you have towards crypto. Challenge yourself once in a while to look at the inversed Bitcoin chart and see if your current view on the market still holds!