Bitcoin BTC
A triangle that acted as a reversal pattern puts pressure on Bitcoin price in the short and medium-term. The digital asset was smashed lower by remarks from the Fed’s Chairman, Jerome Powell.
It is not the first time when a U.S. official talks down the cryptocurrency market. Several weeks ago, the U.S. Treasury Secretary, Janet Yellen, did the same, triggering a move lower toward the $40k area. Coincidence or not, that is the target for the current pattern too.
Bitcoin reached a new all-time high after Yellen’s remarks, trading at the $60k level, but found no following. As such, the market formed a series of lower highs and higher lows, typical for a triangular formation.
From a technical perspective, the triangle forme at a new high suggests a pattern known under the name of a flat. A flat has three segments, and the last one exceeds the previous segment’s length. As such, the move lower that started after the triangle broke lower should not stop until the market makes a new marginal law. More precisely, a move to $43k and below should not be discarded.
To trade the pattern, bears may want to stay on the short side with a stop at previous triangle’s apex ($58k) and a target at the $42k-$43k area.
