When trying to predict the future price of bitcoin, it’s impossible to do so without first looking at its past.
Since the base range of this descending triangle is 54 percent, a subtraction from the breakdown point of the triangle provides a target of $2,676.
Usually, this would be the ideal spot for the market to bottom (give or take a few percentage points) but since the price history above $13k does not fit in the triangle, a secondary target should be created due to the nature of bitcoin breaking down to an opposite but equal distance as its run up.
The range from bitcoin’s all time high of $19,666 to the breakdown point is 70 percent, so when when subtracted from the breakdown point, the target of $1,725 is created.
In conclusion, bitcoin’s price tends to follow an ‘opposite but equal’ rule when recording a triangle pattern breakdown.
Using that logic, an ideal bottom zone for the cryptocurrency’s most recent bear market is between $2,676 and $1,725 – give or take a few percentage points in either direction.
Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.
Bitcoin image via myBTCcoin
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