Over the past 2 weeks, Bitcoin has been forming a pattern that has 2 different outcomes. One is bullish and one is bearish. Notice that it’s always good to be openminded to looking at patterns. You should look with the intent to see what all it could do. Each pattern leads to different possibilities and probabilities for the price movement. This is important for us to know especially if you are trading any coins.
The 2 Patterns That Have Been Forming
First, we will look at the bearish pattern below. The formation here is that of a bull flag. The price comes off of it’s recent high and bounces in a channel in an upward motion. The pattern requires a completion of the E Wave, after which prices will look much lower than the channel for support. This is not the only choice for Bitcoin (BTC) at this time though thankfully.
Bear Flag Pattern
If you look closer you will see another formation in the mix here. To make it easier on the eyes and for you to follow along better, I have removed the bear flag to show you the bullish pattern below. This pattern is a bullish triangle. Similarly, it too starts at it’s recent high and then bounces on it’s lowest support. The next movement was not it’s high so the B Wave finishes at the point shown below in the diagram. This wave too has a corrective ABCDE but lends itself to a breakout at the end of the pattern. Which is great and bullish for us.
Triangle Pattern (Bullish)
Yet, time is the only thing remaining to tell us what Bitcoin will do next. If the bear flag confirms, make sure to put your stop losses in so that your account doesn’t get rekt! Below is the original picture I was going to post, but I thought you might find it confusing. I know I would if that was the first thing I saw. As always collect those profits and trade smart!
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. Information contained herein is obtained from sources believed to be reliable and from personal experience, but its accuracy cannot be guaranteed. WhyNotCrypto.com does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred. As always, trade at your own risk, do your research, and never invest more than you can afford to lose.