¿BEARISH ASCENDING TRIANGLE? - YES, THAT'S ACTUALLY POSSIBLE
Hello people! Recently, it has been confirmed we're currently inside an ascending triangle formation (PINK TRIANGLE) in which the resistance remains around 3880 and the supports are higher each time we go down. I'm aware that this could be interpreted as a bullish indicator, but actually it might be the opposite though. As you all may know, an ascending triangle formation is not necessarily a bullish formation, it all depends on the kind of entrance we made into the triangle. Let me explain this a little bit better:
There are two kind of ascending triangles, those that represent a continuation pattern upwards and those that represent the opposite, a continuation downwards. In this case, it all depends on where the price came from when getting into the triangle formation. In this specific case, the price came from above, which means that it created the first support of the triangle before going up to touch the resistance. This is a not very common formation and that could be the reason that explains why people sometimes think that all ascending triangles are bullish when they are not.
So, based on the information above, I think that we might touch the resistance on more time, maybe tonight or tomorrow and then, we should go down below 3660, where there's an important buy zone and once we reach that area, we'll see what's next for BTC.
There are two kind of ascending triangles, those that represent a continuation pattern upwards and those that represent the opposite, a continuation downwards. In this case, it all depends on where the price came from when getting into the triangle formation. In this specific case, the price came from above, which means that it created the first support of the triangle before going up to touch the resistance. This is a not very common formation and that could be the reason that explains why people sometimes think that all ascending triangles are bullish when they are not.
So, based on the information above, I think that we might touch the resistance on more time, maybe tonight or tomorrow and then, we should go down below 3660, where there's an important buy zone and once we reach that area, we'll see what's next for BTC.