As we mentioned in previous posts, Bitcoin price had formed a triangle pattern. Price mostly moves sideways after the strong decline from $65,000. Such a triangle pattern is usually a continuation pattern and usually find near the end of the trend. What this means is that although the most probable scenario is for price to break the triangle to the downside, this will most probably be the final leg down before a major bounce or counter trend move.
Black line - support
Blue line - expected size of decline of triangle break down
Yellow rectangle -target area
Bitcoin will most probably break towards the downside as long as price is trading below $39,000-$40,000. My target area is between $23,000 and $16,000. Support by the triangle is found at $34,500-$35,000. Breaking below this support we should see downward pressures on price. However as we mentioned above, I expect this sell off to be the last one and then price to start a major bounce or new upward move that will at least push price towards $45,000. Trend remains bearish as price continues making lower lows and lower highs. There is no reversal signal yet.
