Bitcoin Technical Analysis for 03/28/2016 – Triangle Pattern

In BTC/USD we have a triangle pattern holding us in a range pattern, it stretches back to November 2015. Unfortunately this pattern isn’t directional so traders shouldn’t establish bearish or bullish bias solely on this pattern.

For example we have held the upper end of the triangle 4 times, which can be bearish or bullish depending on your analysis. The bears can say that price was held by the upper end of the triangle, while bulls can say the bottom of the triangle was barely tested. In truth we are simply in an ever decreasing trading range and should break out relatively soon.

Bitcoin Triangle Pattern

 

The good news for the bears is that the last time we were in such a triangular pattern we followed through on the downside. This was from the all time highs in November 2013. I probably should say that if I was forced to make a trade it would be to the downside but I prefer to wait for confirmation as we exit the triangle whether up or down.

 

It is also interesting to note that significance of November highs in BTC from 2013 to 2015.

Bitcoin Daily Chart

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