bitcoin BTC
Bitcoin price action looks heavy here. The digital currency forms a contracting triangle that may act as a continuation pattern.
Such triangles are typical when the market consolidates ahead of a new lower low. The measured move equals the length of the longest segment of the triangle, projected from its breaking point. Therefore, on a clear break below the lower edge of the triangle, we should see a quick fallout toward the 20k area.
Bitcoin and the cryptocurrency market have suffered from a massive decline as a bearish market triggered a sustained move lower. Bitcoin price declined from over $60k to $32k, losing more than half of its value with no significant bounce.
The technical picture looks bearish, but bulls may also have something to trade. The key point to remember here is that such a triangle may act as both a continuation and a reversal pattern, so the best way to do is to wait for the market to move first.
Bulls may want to wait for a daily close above 40k, before going long with a stop at 35k and targeting a move back above $60k. Bears may want to way for a close below 32k before going short with a stop at $38k and a take profit around the 20k area.
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