Bitcoin (BTC) has finally done the inevitable and broken past the bears’ favorite descending triangle. I discussed in my analysis on August 31st how it is not just possible for Bitcoin (BTC) to break the descending triangle but also very probable that it will do that. In fact, I went as far to say that it has to happen and now as we can see it finally has. The reason I expected this to happen was because the bearish resolve had to be weakened before the beginning of the formal downtrend. As you can see the bearish resolve is greatly weakened. A lot of bears entered shorts near the top of the descending triangle and as we can see the price shot up past the descending triangle running their stops.
The price kept on surging to run more and more of these stops. If we look at Bitmex liquidations on Datamish, we can see that many of the shorts with nearby stops to the descending triangle were liquidated by this big move to the upside. However, for Crypto Daily reader this was nothing surprising as we have been talking about this move for more than a week. We have been talking about the possibility of a big move to the upside. If we take a look at the symmetrical triangle on the daily chart for BTC/USD, the price has now rallied past the 200 EMA on the 4H time frame and it is well past the 50 EMA on the daily time frame. This means that the bears are very scared and the bulls will only get more confident here.
A quick glance at the ETH/USD chart tells us that nothing has changed. The falling wedge that we see on the chart is unlikely to come to fruition and as we have discussed before unless the price breaks above the falling wedge to make higher highs and higher lows, the price remains as bearish as it was since the beginning of the downtrend. If we take a look at the EUR/USD chart, we can see that it has already begun its downtrend and is now expected to complete this move to the downside by this year or by June and July of 2020 at the latest. In any case, this is bad news for Bitcoin (BTC) and other cryptocurrencies. As BTC/USD continues to consolidate within the symmetrical triangle a lot of people are going to get very bullish again until the price breaks to the downside and they realize what is going on.