TechnoMeter

Bitcoin near the apex of a triangle, sitting on big support

On Friday, the cryptocurrency market was sent lower by exchange-related news in Japan, but managed to rebound. The drop and rebound helped further along the development of a symmetrical triangle in Bitcoin (BTC/USD). The coiling price action is indicative of a potentially explosive move on the horizon.



Triangles can break in either direction, which is why it is important to wait for the break, rather try and predict it, before becoming aggressively positioned. The development of the formation arrives at an interesting juncture. The trend-line from July has been broken on several occasions on an intra-day basis since the sharp reversal on Jan 17, but each time Bitcoin managed to close the day at or back above. Should we see a downside break unfold, it would not only constitute a breach of an important trend-line, but also occur in the direction of the trend off the December high, which could get Bitcoin really rolling downhill.

more...