Asymmetrical triangle pattern in BTC
BTC futures are trading within an asymmetrical triangle, this pattern is relevant now and could continue to define price action until the current correction concludes. The left side of the triangle is drawn by connecting the high of December 11, 2022, the all-time high on January 8, 2021. The right side of the triangle can be drawn by extending a line through the all-time highs on January 8 to the high achieved on January 15 and extending that line. Where the bottom or base of the triangle is drawn depends on how far this correction takes us.
If this pattern stays intact and concludes at the same area in which it started pricing would go as low as $18,000. However, I find this highly unlikely and there are a few logical areas for this pattern to complete that would signal a likely area for the current correction to reverse, we will go over those areas in detail over this article.
One very interesting and helpful characteristic of this pattern is that it can give us both price points as well as time frames to where this pattern and correction may conclude. The first possible base for this pattern occurs at the 38% retracement ($30,170) if this extremely optimistic scenario plays out with it would mean the timeframe for BTC to return to a bullish mode would be around February 2nd. The second area which our studies indicate is the most probably would have this pattern conclude at approximately $26,300 in the timeframe for us to reach this price point considering this pattern is still intact would be approximately February 9th. This price point also corresponds to a Fibonacci harmonic using two data sets the first being a retracement from the multiyear high at $20,000 down to the bottom at approximately $3000, the second data set consists of an extension I have finished the second draft I’ve read it over me you as well go as I matter is what just there later this is a letter of two-page letter you’re talking I know what is I talking one thing no I think spans from the bottom at $3000 up to 2019’s high at approximately $14,000. These two data sets harmonize at approximately $26,500. And if you add in our current fib retracement you can see by looking on our chart that the 50% retracement also harmonizes at the same price area.
The third logical price zone for the pattern to finalize is at approximately $22,400 which is the 61.8% Fibonacci retracement point. One other interesting facet to this level is it would backfill the large $300 gap on the CME’s daily candlestick chart that occurred between December 24 and December 28, 2020.
I believe very much so that one of these three levels will be an area where a key reversal will occur at I think the second area mentioned at $26,300 is the most likely however a retracement to the third area at $22,400 would certainly be extremely healthy for the market and traders along with myself would welcome it as it would bring prices close to where they were before they went on an unsustainable spike.