A descending channel is a chart pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels. The descending channel pattern is also known as a falling channel or channel down. The upper line is identified first, as running along with the highs and is called the trendline. When the price is around the upper trend line , look for short opportunities, although aggressive traders could trade long and short at both trend lines looking for a bounce or pullback.
Another way to trade this pattern is to wait for the price to break through either trendline. Descending channels, like ascending channels, are a tool for determining whether the trend in price will continue.
Currently, Bitcoin ( BTC ) is at $21962. If the pattern continues, the price of Bitcoin ( BTC ) might reach the resistance level of $23755, $24283, and $25192. If the trend reverses, then the price of Bitcoin ( BTC )may fall to $21607.56