Bitcoin is in the Ascending Triangle Shock? Guide to Analyze BTC K-line and Make Profits
K-line, found by a Japanese rice trader Munehisa, Honma is also known as candlestick, a technical analysis method about the price prediction of financial products like stock, gold, etc. in Asia. K-line consists of three parts: body, upper shadow and lower shadow. The part between open price and close price, drawn into a rectangle, is the body of K-line.
What is Ascending Triangle Pattern?
Price bounces between two converging trendlines, the top one is horizontal and the bottom one slopes upward. It is also known as the bullish triangle because it leads to a bullish breakout.
To calculate a price target, subtract the price of the lowest valley in the chart pattern (A) from the price of the top trendline (B). That gives the height. Multiply the height by the ‘percentage meeting price target’ from the Important Bull Market Results table near the top of this page, and add it to the price of the top trendline B. In this example, point C makes for a good stop location.
Where will Bitcoin price head to?
Bitcoin price experienced a dramatic fluctuation last Wednesday, firstly pump to $12,000 then been surpassed, and dump sharply in the next hours. We could clearly see that the price trend is trying to set a new high, while low point will not break the rising trend line and 90-average support. The BTC price is coming into the triangle shock range.
From the recent 2 days trend, it’s easy to predict that whales began to sell in stages, and then sell again after pulling the price up a little to attract more retail investors to get in. And the power of pulling up is not strong, thus came into the final formation of the triangle shock.
Is it time to open a long position?
On the 1 hour chart for BTC/USDT, we can see the ascending channel formed as a result of the recent breakout taking price levels up to a key resistance level at $12,000. It’s likely that if BTC can surpass this resistance level price levels will attempt to break the yearly high around $14,000. Volume levels have been rising steadily throughout this newly formed uptrend which is a sign of strength.
On the technical analysis, BTC surges to lower high and failure to gain essentially meaning bullish momentum isn’t strong enough to result in a higher market price yet. 200 EMA at $11,350 is now acting as the visible range support.
If BTC fails to sustain at around $11,300, it may decline to $11,150 support level.
If BTC breaks above $12,000, it may surge to $13,000, and then $14,000.
Note: This is personal prediction and not trading suggestions.
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