With Bitcoin breaking to the downside out of its symmetrical triangle formation, the support provided by that structure is removed changes other macro forces of influence should be considered.
In these two charts, I show the very bearish pennant formation in the weekly chart on the left, along with its broadening and bearish MACD, and on the right the daily chart.
Structurally in the daily chart we can see the influence of a large Head & Shoulders pattern that has been completed, projecting a price of $27.7k. The break of the Symmetrical Triangle to the downside signals continuation of the prior downward trend and the height of the triangle from the breakout point projects a price of c.$23k. The MACD in the daily is also on the verge of crossing bearish. Price is comfortably contained within the lower bound of the Bollinger Band so there is no imperative there for a change in the status quo.
In summary, the Bitcoin chart looks very weak. Just what is needed to affect a strategic asset accumulation.
In these two charts, I show the very bearish pennant formation in the weekly chart on the left, along with its broadening and bearish MACD, and on the right the daily chart.
Structurally in the daily chart we can see the influence of a large Head & Shoulders pattern that has been completed, projecting a price of $27.7k. The break of the Symmetrical Triangle to the downside signals continuation of the prior downward trend and the height of the triangle from the breakout point projects a price of c.$23k. The MACD in the daily is also on the verge of crossing bearish. Price is comfortably contained within the lower bound of the Bollinger Band so there is no imperative there for a change in the status quo.
In summary, the Bitcoin chart looks very weak. Just what is needed to affect a strategic asset accumulation.
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