Over the past few weeks the debate is if the latest consolidation on BTC is a bearish chart pattern, possibly a descending triangle that suggests further downside or a symmetrical triangle, a neutral chart pattern that can act as a continuation as well as a reversal.
I think the chart pattern fits more a symmetrical triangle labeling. It is difficult to draw a well-defined horizontal boundary for it to be a descending triangle. Last 3 month’s price action have clearly shown low volatility conditions, which is a sign we are due for a strong directional movement. In other words we are due for a breakout soon.
The price has been trading above the year-long average and has been in a steady uptrend. In such conditions my default thinking is the possibility of forming a bullish continuation chart pattern that can resume the existing uptrend. So I’m weighing the possibility of a symmetrical triangle that can act as a bullish continuation chart pattern with a breakout above 11K. The recent consolidation on the long-term chart clearly shows a pause in the uptrend.
The upper boundary of the symmetrical triangle is forming resistance at 11,000 levels. The lower boundary is support at 9,500 levels. If there is a breakout on the upside the price target for the symmetrical triangle stands at 16,000 levels.