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The price of bitcoin Wednesday has depreciated up to 2.56% because of the strengthening of the US dollar. Paradoxically, this might not be such a bad thing for the cryptography market.
The exchange rate between bitcoin and the dollar (BTC / USD) peaked at $ 3,340 on an intraday basis, while retesting the trough of the January 29 trading session. Bulls attempted to reverse price action by retaining the bearish bias. Nevertheless, the pair consolidated above $ 3,340, which helped recover $ 3,400 in the short term.
The six triangles of Bitcoin
BITCOIN (BTC / USD) 4H | SOURCE: COINBASE, TRADINGVIEW.COM
In our previous badysis released on Monday, we predicted a dump in bitcoins because the volatility and volume of the cryptocurrency were below normal. We also noted a surprisingly similar trend between current and previous Bitcoin price actions. In this badysis, we are trying to develop the same thing to predict where could the next bitcoin move be.
In the graph above, Coinbase shows that bitcoin tends to weaken inside a falling wedge formation. Inside the hold, the price has consolidated inside a small symmetrical triangle (1). He tried an escape that finally could not flourish. The price was reversed and formed a big bearish flag, then continued to consolidate again into a new symmetrical triangle (2). The price action was repeated four times, excluding the current scenario (6), which has not yet reached maturity.
A closer look at the Bitcoin price
Let's take a closer look at the same graph.
BITCOIN (BTC / USD) 4H | SOURCE: COINBASE, TRADINGVIEW.COM
As Period 6 develops, bitcoins can form a smaller symmetric triangle, as they attempt to retest the corner resistance downward (represented by a declining trendline). Meanwhile, the price would maintain pressure on $ 3,430 to maintain its temporary resistance. Based on previous price actions, Bitcoin should continue its momentum. However, as we reach the top of the declining range, the price should technically attempt a sharp breakout.
As we wrote in our previous badysis:
"Technically, a downward corner configuration is a bullish indicator. It begins roughly at the top, but narrows as the badet decreases, while forming reaction peaks and converging depressions. As it approaches the top of the cone, the badet experiences a break in resistance to find a new support zone. "
As a result, Bitcoin is likely to outperform its wedge model in the next bull market. Traders should be wary of reversal indicators, such as doji, which occurs when a candle has an open and close at the same price, coupled with an increase in trading volume.
Conversely, a prolonged downward move would push the price of bitcoin to $ 3,100 – the current lower level.
Featured image of Shutterstock. TradingView Charts.
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