..the triangle is large enough to TECHNICALLY produce a fall to zero. Now, I’m sure a million people will get their panties in a bunch when they read that, but it’s just a fact of price analysis.
Hi friends! Welcome to this update analysis on Bitcoin! Let’s get right to it! Looking at the daily chart, you can see that the breakdown below the rising black trendline is sustained. This is technically concerning, but I have noticed that several of my followers did not seem to recognize the importance of this event. Perhaps it is due to the fact that my charts were zoomed in too far for people to see the actual points of contact on the trendline, but nonetheless, I will explain why this is concerning price action.
We all know that there are rising trendlines, falling trendlines, and parallel trendlines. In terms the current bull/bear cycle of Bitcoin -4.19 %, the rise to the all-time high produced several pivot lows. Those pivot lows can be used to create rising support lines, to gauge the sustainability of a longer-term bullish continuation, or a turning point in the bear market. As you can see, the two points that create the rising black trendline are the lowest pivot lows that are relevant to this cycle. In other words, that was the last hope for rising support. Sure, there are other parallel and descending trendlines in the mix, but for a gauge on a bullish continuation, this black trendline is pretty significant. Now that it has been taken out, some significant technical damage has been done. That’s not to say that BTC -4.19% won’t continue to form a bowl-like structure, which it appears to have half way formed already (meaning we could be bottoming soon.) However, the deeper technical picture tells a more bearish story.
First of all, if we look at the descending triangle, the height of that triangle (black dashed vertical trendline ) can be used to gauge the full potential of a breakdown. This is common price target analysis. I actually published an analysis on this months ago, but if you subtract the height from the potential breakdown area (below the triangle) you see that the triangle is large enough to TECHNICALLY produce a fall to zero. Now, I’m sure a million people will get their panties in a bunch when they read that, but it’s just a fact of price analysis. Fundamentals aside, if you look at the size of that structure, it is definitely large enough to produce a complete meltdown. I’m not saying that will happen. I’m just showing you the technical red flags, that shouldn’t be ignored.
Furthermore, BTC -4.19% remains in a clear bear market downtrend. Lower highs, lower lows, failures at all major moving averages, and not a sign of relief in sight. I see so many analysts calling for the moon from here, but without even a solid higher high on the chart, or a hold above critical moving averages, I don’t see how they can even call themselves analysts. But, that’s neither here nor there.