BTC - Double-Edged Sword ⚔️

20. Nov. 2022

Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.

After that big bearish movement due to FTX crash, BTC has been stuck inside a range in the shape of a symmetrical triangle.

🗒As per the textbook, a small symmetrical triangle after a big impulse movement is considered a pennant, a trend continuation pattern!

P.S. A big symmetrical triangle on a lower timeframe, is simply a small pennant on a higher timeframe.

Even though, as per the pennant pattern the bearish continuation is more probable, but we all know that a symmetrical triangle is a bilateral pattern.

P.S. Bilateral pattern means that it can be broken either sides.

📌That being said, here are the possible scenarios:

1- Bearish Scenario: Pennant

If BTC breaks below the lower bound of the pennant and 15700 previous lows, then expect that bearish continuation pennant to get activated.

In this case, we will be expected the bearish movement (projection) to be almost the same size of the previous bearish impulse. Which would bring us to the 12k weekly demand zone.

2- Bullish Scenario: Short-Term Correction

If BTC breaks above the upper bound of the pennant, then we will be expecting a movement till the 18k resistance. and if the 18k is broken upward, then further upside till the 20k supply zone would be expected.

Always follow your trading plan regarding entry, risk management, and trade management.

Good luck!

All Strategies Are Good; If Managed Properly!
~Rich