BTC - The Range Is Getting Narrower 📦

May 21, 2023Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.

BTC has been boring for the last couple of weeks as it is stuck inside a range.

📉 The range is getting narrower because BTC is forming lower highs and equal lows as a descending triangle pattern.

As per the textbook, the descending triangle is usually a bearish continuation pattern. But to me, it can be broken either side.

If we break the last major low in red downward, we will expecting further bearish movement till around 25,000

🏹 Here is why the 25,000 zone marked by purple circle is a strong support:
1- Round number => 25,000
2- Classic Resistance Zone Turned Support
3- Lower red trendline from daily acting as a non-horizontal support
4- Lower orange trendline from H4 acting as a non-horizontal support
5- Demand zone

📈 In parallel, if BTC breaks above the last high in blue, we will be expecting a bullish correction till the upper orange trendline.

Which scenario is more likely to happen next? and why?

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

Good luck!

All Strategies Are Good; If Managed Properly!
~Rich