Bitcoin (BTC) has been trading in a descending triangle bearish chart pattern since the beginning of the year. Will Bitcoin breakout of this descending triangle pattern to the upside reaching $10,000 USD once again? Or, will Bitcoin breakout of this descending triangle to the downside dropping below $5,000 USD as several Bitcoin analysts recently predicted.
Back in December of 2017, Bitcoin was trading at nearly $20,000 USD per coin. Within a few months Bitcoin dropped below $6,000 USD. Then rebounded to almost $12,000 USD by mid February 2018. At that time, the top crypto currency analysts predicted a resurgence in Bitcoin. That resurgence was short lived.
Many traders are envisioning all-time highs this year will reach between $30-50K before the next big correction.
Descending triangle chart patterns by definition show a string of lower highs which form the upper line. A lower line is then drawn to indicate a support level at which the price can't seem to break. In the Bitcoin BTC USD chart snapshot above, you can clearly see both a string of lower highs and a support level just above $6,000 USD. Descending triangle chart patterns are bearish and they are used by traders to predict a breakout to the downside.
Also visible in the Bitcoin BTC USD chart snapshot is a decrease in BTC trading volume as we approach year end. I wonder if any large crypto currency funds will decide to take profits (or losses) prior to year end. Watch your favorite BTC USD chart these next few months. A Bitcoin breakout up or down appears ready to happen at any time.
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