Continuation BTC USD Patterns
When these continuation bitcoin chart patterns are formed they confirm that the current bitcoin trend is going to continue moving in same direction.
These patterns are used by cryptocurrency traders to identify half way points of the trend, this is because they form at the half way point of a trend.
There are 4 types:
- Ascending triangle
- Descending triangle
- Bull flag/pennant
- Bear flag/pennant
Ascending Triangle
The ascending triangle is formed in an up bitcoin trend and it shows that the upward direction of the market price is going to continue.
It shows that there is a resistance area that buyers keep pushing every time moving it higher, and once it breaks, the bitcoin price will continue moving upwards.
Overhead resistance temporarily halts the bitcoin crypto market from moving higher, while the ascending btcusd crypto trend line beneath the setup signals that buyers are still present. An up-side penetration of the upper line is a technical buy cryptocurrency signal for a market breaking out from an ascending triangle.
Found within a Bitcoin upward bitcoin trend, the ascending triangle forms as a consolidation period within the up bitcoin trend and shows upside continuation will follow.
The market formed developed an ascending triangle during its up bitcoin trend which led to up side continuation. Buy point is when btcusd bitcoin crypto price clears the upper sloping line & the btcusd cryptocurrency market continues heading upwards.
Descending Triangle
The descending triangle is formed in a down bitcoin trend & it highlights that the down-ward direction of bitcoin price movement is going to continue.
It shows that there is a support zone that the sellers keep pushing every time moving it lower, & once it breaks, the btcusd crypto price will continue to move downwards.
The support temporarily stops the btcusd market from declining, while the descending sloping line above the setup signals that the sellers(bears) are still present. A down-side penetration of the lower line is a technical sell cryptocurrency signal for a market breaking downward from a descending triangle, and it shows selling will follow.
Found within a downward bitcoin cryptocurrency trend, the descending triangle pattern develops as a consolidation phase within the down bitcoin trend & reflects downside continuation will follow.
Market formed a descending triangle during its down bitcoin trend which led to further selling & continuation of the down-wards cryptocurrency trend. The technical sell cryptocurrency signal is when bitcoin price breaks-out lower horizontal sloping line as selling resumes to push the btcusd market lower.
Bull Pennant/Flag
This bitcoin pattern forms what looks like a rectangle. The rectangle is formed by two parallel lines that act as support and resistance for the bitcoin price until the bitcoin price breaks out. In general, the flag will not be formed perfectly flat but it will be formed sloping.
The bull flag is found within a Bitcoin upward cryptocurrency trend. In this continuation pattern where the btcusd market pulls back slightly, it is therefore a slight retracement with narrow bitcoin price action that has got a modest down-ward tilt. The technical buy point is when bitcoin price penetrates the upper line of flag. The flag portion has highs and lows which can be joined by small lines which are parallel, giving it what resembles and looks like a small channel.
The pennant occurs at half-way point of a bullish upward bitcoin trend & after a break out a similar move equal to the height of the flag-pole is expected.
The bull pennant above was just a resting period as the btcusd market gathered strength to break out & move higher. The continuation signal was confirmed as a upper line was broken to the up-side.
Bear Flag/Pennant
This flag is found in a Bitcoin downward cryptocurrency trend. The bear flag is a continuation pattern where the bitcoin price retraces slightly/a little with a narrow bitcoin price action that has a slight up-ward tilt. The technical sell point is when bitcoin price penetrates lower line of inverted flag. The pennant portion has highs & lows which can be connected by small lines which are parallel, giving it what looks like a small channel.
The bear pennant above was just a resting period for the btcusd market before more selling. Continuation trade signal was completed when the lower line was broken to the down-side.
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