Bitcoin Price Breaks Down From Triangle, Target Suggests Revisit of $6K

Tony "The Bull" Severino

5 years ago

2 mins read

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Carnage and fear have returned to the crypto market in a big way, now that Bitcoin price has dropped from the trading range it has been locked in over the last 3 months. It’s caused even the most bullish crypto investors to consider bearish scenarios.

The trading range that’s now in Bitcoin’s rearview mirror eventually formed a descending triangle, that has now begun to break down. The target of the triangle may take Bitcoin price back down toward previous bear market support near $6,000 – a price level where Bitcoin spent the much of 2018 trading at.

Bitcoin Price Could Retest $6K Following Break of Descending Triangle

Throughout the majority of 2018, Bitcoin price ping-ponged between decreasingly lower highs and support at $6,000, forming a technical analysis chart pattern called a descending triangle. The multi-month descending triangle had a target of the low $3,000 range, but crypto investors were certain that $6K would hold up as it had already done so so many times before.

But eventually, that support broke and the triangle broke down, taking Bitcoin price to its bottom at $3,200. From there, the leading crypto asset went on yet another parabolic rally where it eventually met former bear market resistance and was rejected at $13,800.

Since then, the market has been having deja vu. Bitcoin price once again found itself making decreasingly lower highs while bouncing off support at $10,000 again and again, forming yet another multi-month descending triangle at the top of the now broken parabolic trend.

According to crypto analyst Dave the Wave, the triangle has a measured target that would take Bitcoin price down to below $7,000 back into the $6,000 range – that acted as bear market support, turned resistance, and could be once again retested as support.

Assuming you still have dry powder left, and assuming it goes this low, will you be ready to pull the trigger? pic.twitter.com/eCANwD4XZt

— dave the wave🌊🌓 (@davthewave) August 29, 2019

Yesterday, that triangle began to break down, sending Bitcoin price plummeting nearly $1,000 in less than 24 hours. It’s also caused the market – already at the highest historic point of fear due to altcoins capitulating en masse – to panic and worry the worst has yet to come.

But Bitcoin price returning to $6,000 to confirm it as support may be extremely healthy and what’s needed to eliminate any remaining fears that the bottom isn’t in, and solidify the foundation of the next crypto bull run.

Because Bitcoin has already started on what most believe is the next bull run, there is a strong chance the descending triangle target is never reached, and instead falls to one of the many other support levels above. $8,500 is yet another area of high interest that’s highly cited as a support level and where a CME Futures gap lies, and could incite so much buying that $6K is never again tested.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.