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Consolidation pattern continues to hold Bitcoin

Nick
September 2, 2019
by Nick Alexander,

Traders looking at Bitcoin on the daily chart we can clearly see that price is firmly held in a consolidation pattern after buyers re-held the base in last Friday’s session.

Bitcoin is currently trading in a descending triangle pattern these patterns are not always seen as bearish but traditionally are seen as possible reversal patterns. The pattern is in an uptrend this could be a consolidation before a new leg higher or distribution before a new move lower. As with all price patterns a trader needs to wait for direction before committing to a position. The short-term looks to show that buyers have a small upper hand after holding the support level. A rally and higher low could set up a move to test or break the pattern but a new lower high inside could suggest a new test of the base.

Looking past a Bitcoin breakout using a measured move, depending on breakout direction we could see 13,810 as an upside target and 5070 as a downside target. Measured moves are used for indicative purposes only to gauge an idea of how far the breakout could go based off the width of the pattern.

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