Crypto analysts are seeing a lot of triangles these days.
Late last month, Bitcoin broke down from a descending triangle that was identified by a number of analysts, including veteran technical trader Peter Brandt.
The breakdown brought the price of BTC from around $10,116 to a low of $7,869 in a matter of days, according to data from the price aggregator CoinMarketCap.
Now, crypto analyst Dan Gambardello says BTC may be in a giant symmetrical triangle that dates back to the middle of 2017.
The top of the trendline is Bitcoin’s all-time high at around $20,000, followed by its recent high of nearly $14,000. The bottom trendline starts all the way back in mid-2017, when the price of the leading cryptocurrency was just over $2,000. The line also touches BTC’s 2019 bottom of around $3,150.
If the triangle is confirmed, Gambardello says BTC would target at least $50,000.
“I don’t necessarily think this symmetrical triangle will play out. However, if it does, it would be the most epic continuation pattern with a breakout target to $50k+”
Meanwhile, fellow trader Tone Vays remains cautious about the path ahead.
On a new episode of Trading Bitcoin, Vays says Bitcoin may have pulled back enough to start a new rally, but he’s still expecting BTC to hit a lower low in the short term.
“Would I be in a long trade right now? Probably not. I am not comfortable with this long trade. We are still below the 200-day moving average. We need to close fully above it. Also, we just pumped a lot and I always look for a pullback.
Now, was this pullback sufficient enough from the $14,000 zone? I have stated this many times. This pullback is technically enough, but I don’t like this bottoming process. And that is why, at the moment, I am still expecting slightly lower lows.That doesn’t have to happen. What I expect from the charts doesn’t have to happen.”