bitcoin

What Comes Next After Bitcoin’s Plunge? – Forbes


After a strong performance this spring in which Bitcoin more than tripled in price, the digital currency has given back nearly half of its gains since July. In September alone, Bitcoin sunk by approximately 20% as it proved unable to hold above the key $10,000 psychological level. Bitcoin’s September decline caused it to break down from a descending triangle, which is a chart pattern that often signals further bearish action ahead. In order for Bitcoin to negate its recent bearish signal, it would need to climb back above the descending triangle’s $9,500 support/resistance level in a decisive manner.

Finviz.com

What should concern the Bitcoin bulls is the small pennant pattern that is currently forming. Pennant patterns often form after sharp market moves and indicate that a continuation of the most recent trend is likely once the pattern resolves. If Bitcoin breaks down from the current pennant pattern in a convincing manner, it may indicate a high likelihood of further declines. If Bitcoin breaks out of this pattern to the upside, however, it would negate the pattern and the caution signal that it is currently giving. For now, I am watching which way this pattern breaks out.



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