Bitcoin is Forming a Descending Triangle on The Hourly Chart, Analyst Asks To Focus On These Two Key Levels
According to crypto trader Ali, bitcoin appears to be carving out a descending triangle pattern on its hourly chart that could soon result in a major price swing. He notes that there are two key levels that may determine the next big BTC move: $41,900 and $40,700.
As Ali points out, Bitcoin has formed lower highs and horizontal support around $40.7K over the past couple days, creating the descending triangle. Descending triangles are typically bearish patterns, but BTC remains stuck in the middle of the formation for now.
The boundaries created by the horizontal support and angled resistance lines are squeezing price action into an increasingly tight range.
Ali believes that eventually, Bitcoin should see a strong breakout move once this period of consolidation comes to an end. If BTC falls through support around $40.7K, he sees a potential drop of 8–9% toward the low $30Ks.
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Show more +However, a move above the descending trendline and $41.9K could also spark a rally of similar size. In other words, as per Ali’s analysis, bitcoin looks wound up and ready for higher volatility after days of directionless churning.
He advises traders to keep a close eye on the apex of this triangle, as BTC’s next big swing looms in the very near future. A clean break above $42K could ignite the bulls, while a plunge below $40K may open the floodgates for more downside. After several days of calm, Ali believes bitcoin appears on the verge of making its next major move.
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