Bitcoin May Be On The Verge Of A Powerful Move
Jesse Colombo | Oct 23, 2018 12:10AM ET
After its powerful surge in late-2017 and stunning plunge in early-2018, Bitcoin’s volatility has died down significantly as it settles into a narrowing range just above its key $6,000 support level. This narrowing pattern appears to be a descending triangle, which has very bearish implications if the cryptocurrency breaks below the key $6,000 support level in a convincing manner with high volume.
A decisive break to the upside, however, would increase the probability of further bullish action. Either way, when a market narrows to a fine point like Bitcoin is, it typically indicates that a volatile move is likely ahead, upon a final breakout or breakdown.
The weekly Bitcoin chart puts this descending triangle pattern into perspective a bit better:
Bitcoin volatility is at unusually low levels according to Bollinger® BandWidth (a volatility indicator), which means that there is a high probability of a strong move soon:
I will be watching closely for a breakout or breakdown to confirm this descending triangle pattern.
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