Bitcoin Daily Chart Descending Triangle

Bitcoin is showing a nasty descending triangle pattern that has failed technically. The down move once the triangle base fails is typically equal to the vertical side of the triangle, however, this would wipe the bitcoin out to zero. The descending triangle points lower but more realistic targets are provided by the consolidation areas (blue circles) at 330-ish and 200. Bitcoin will need to back kiss the base line of the triangle at 550 at some point forward. When this occurs a critical bounce or die decision will result. Price will either recover above 550 and point to blue skies and rainbows ahead, or, collapse likely pointing to a potential demise of this flamboyant virtual currency at least down to the 330 then 200 levels.

Bitcoin bulls need price above 550 as soon as possible. Bitcoin bears need the recent lows to be taken out, call it 420, and that would send price down to the 330-ish support test. If price comes up for the back test at 550 it may represent the last best chance to exit the troubled virtual currency. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Special thanks to Bitcoin Charts for providing the chart above which was annotated by Keystone.