We test this BTCUSDT analysis based on trend continuation patterns.
To begin, we explain what trend continuation patterns are. They are graphical patterns that indicate a period of sideways consolidation, meaning the market takes a break. These patterns usually emerge within a well-defined trend. Essentially, during this period, there is a balance between sellers and buyers, which means there is a tie.
We can classify these patterns into three groups, but in this idea, we will only mention the lateral ones.
Lateral: There is more correction in time than in price.
Symmetrical triangle
Bullish triangle
Bearish triangle
Rectangle or sideways channel
Pennant
In particular, we will focus on the formation of the symmetrical triangle since it appears to be forming on the Bitcoin chart at the moment. As you can see in the chart, there is a clear uptrend so far and it is currently in a sideways consolidation that could be resolved with a symmetrical triangle formed by the points (1,3,5) that connect the descending highs. If the price breaks above the line that connects these highs, the pattern could be activated.
To establish a price target, we can look for the height of the triangle between points 1 and 2 once the pattern is activated. However, since it has not been activated yet, the idea will be updated if it is activated to establish a more precise target, which could be around 34,357$.
To begin, we explain what trend continuation patterns are. They are graphical patterns that indicate a period of sideways consolidation, meaning the market takes a break. These patterns usually emerge within a well-defined trend. Essentially, during this period, there is a balance between sellers and buyers, which means there is a tie.
We can classify these patterns into three groups, but in this idea, we will only mention the lateral ones.
Lateral: There is more correction in time than in price.
Symmetrical triangle
Bullish triangle
Bearish triangle
Rectangle or sideways channel
Pennant
In particular, we will focus on the formation of the symmetrical triangle since it appears to be forming on the Bitcoin chart at the moment. As you can see in the chart, there is a clear uptrend so far and it is currently in a sideways consolidation that could be resolved with a symmetrical triangle formed by the points (1,3,5) that connect the descending highs. If the price breaks above the line that connects these highs, the pattern could be activated.
To establish a price target, we can look for the height of the triangle between points 1 and 2 once the pattern is activated. However, since it has not been activated yet, the idea will be updated if it is activated to establish a more precise target, which could be around 34,357$.