It is my understanding that ascending triangles can be bullish or bearish continuation patterns depending on what the general trend leading up to them has been. Since mid June, the overall trend has been bearish. Therefore, even with the somewhat strong pump recently, I don't believe bitcoin is out of the woods. However, this pattern could easily be invalidated with an overnight high volume pump (next 4 to 12 hours), as the above chart is only on the 2hr timeframe. We'll know if the upper triangle resistance line holds soon enough. The visible range volume profile shows significant selling pressure above the ascending triangle's upper resistance line, and the 14 period RSI and MACD are showing higher highs which disagrees with bitcoin's failure to make a higher high as well. I would imagine an upward break would be met with some pushback. Although, I think the more likely scenario is that we at least retest the lower support line of the triangle around 32k.
Note
Upper line breached, Idea invalidated.Note
False upward break at least for now. Selling pressure was met a little above the triangle's upper line as I though could be the case. Perhaps this idea still holds some merit.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.